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, firmal wage employment, infirmal wage employment, selfemployment and firming). Our findings are consistent with the hypothesis of labour market segmentation. firmal employment is preferred to infirmal employment. Unemployment is largely a queuing device for individuals with higher education waiting for firmal 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 detfirminants of labour mobility. Finally, infirmal employment serves as a buffer in times of recession -with firming and infirmal wage employment absorbing labour shed by other statuses during the Russian financial crisis.
labour mobility informal labour transition Georgia