Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279399 
Year of Publication: 
2023
Series/Report no.: 
IOS Working Papers No. 401
Publisher: 
Leibniz-Institut für Ost- und Südosteuropaforschung (IOS), Regensburg
Abstract: 
Using data from the four waves of the Ukrainian Longitudinal Monitoring Survey - ULMS (2003, 2004, 2007 and 2012), we analyze whether workers with a higher willingness to take risks are more likely to select into informal employment contracts. The data permit us to distinguish between five employment states: formal and informal self-employment, formal salaried employment, voluntary informal salaried employment, and involuntary informal salaried employment. The empirical evidence reveals risk attitudes as a strong causal determinant of the incidence of all types of informal employment but involuntary informal salaried employment. We also provide evidence that our results are not driven by reverse causality: risk attitudes impact on the choice of employment state whilst this latter does not influence risk attitudes. Linking risk attitudes with selection into employment states, we also can establish that along the formal-informal divide the Ukrainian labor market is predominantly segmented for salaried workers whilst it is integrated for the self-employed.
Subjects: 
Risk attitudes
informal employment
labor market segmentation
Ukraine
JEL: 
D91
J42
J46
P23
Document Type: 
Working Paper

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