LABOUR MARKET STATES, MOBILITY AND ENTREPRENEURSHIP IN TRANSITION ECONOMIES

Abstract

This paper examines the different strategies adopted by individuals in transition economies to cope with labour market restructuring. Using micro-data from seven countries at different stages of transition, we focus on “active” coping strategies, in particular mobility and entrepreneurship. Our results show that there is significant mobility across labour market states in most countries, but little inflow into entrepreneurship from unemployment or inactivity. Entrepreneurship is a high-reward strategy and is more significant in the advanced transition countries of central Europe, where entrepreneurs tend to be male, middle-aged, and more educated than other members of the labour force. However, in the CIS, there is little difference in the demographic profile of entrepreneurs compared to the rest of the labour force.