Marco Stampini

No Education, No Good Jobs?: Evidence on the Relationship Between Education and Labor Market Segmentation

This paper assesses labor market segmentation across formal and informal salaried jobs and self-employment in three Latin American and three transition countries. It looks separately at the markets for skilled and unskilled labor, inquiring if segmentation is an exclusive feature of the latter. Longitudinal data are used to assess wage differentials and mobility patterns across jobs. To study mobility, the paper compares observed transitions with a new benchmark measure of mobility under the assumption of no segmentation. It finds evidence of a formal wage premium relative to informal salaried jobs in the three Latin American countries, but not in transition economies. It also finds evidence of extensive mobility across these two types of jobs in all countries, particularly from informal salaried to formal jobs. These patterns are suggestive of a preference for formal over informal salaried jobs in all countries. In contrast, there is little mobility between self-employment and formal salaried jobs, suggesting the existence of barriers to this type of mobility or a strong assortative matching according to workers’ individual preferences. Lastly, for both wage differentials and mobility, there is no statistical difference across skill levels, indicating that the markets for skilled and unskilled labor are similarly affected by segmentation.

Labour Mobility During Transition: Evidence from Georgia

This paper deals with labour mobility in Georgia during economic transition. We use quarterly 1998-99 panel data to examine mobility across six labour market statuses (inactivity, unemployment, formal wage employment, informal wage employment, selfemployment and farming). Our findings are consistent with the hypothesis of labour market segmentation. Formal employment is preferred to informal employment. Unemployment is largely a queuing device for individuals with higher education waiting for formal jobs. Some self-employment is subsistence activities and consistent with a segmented labour market, while other is high risk and potentially high return activities. Age, gender and education are significant determinants of labour mobility. Finally, informal employment serves as a buffer in times of recession -with farming and informal wage employment absorbing labour shed by other statuses during the Russian financial crisis.

International Migration from Albania: The Role of Family Networks and Previous Experience

This paper analyzes the sweeping evolution of Albanian migration since 1990, classifying the phenomenon by destination (toward Greece or other countries) and type (temporary or permanent). Using data from the 2002-3 Living Standards Measurement Study (LSMS) panel data set and the 2001 Housing and Population Census, we show first that the profile of migrants has evolved over time, with the phenomenon spreading to less-educated individuals and to poorer regions of the country. Second, we show that family migration networks and previous personal experience, in conjunction with other individual and household characteristics, are the primary determinants of the decision to migrate. The role of migration networks and personal previous experience varies by type and destination of international migration.