Essay on labour supply in transition economies.

This study highlights the factors that influence individual hours of work decision in fi ve transition economies. Employing the modifi ed Heckman estimation procedure the study fi nds positive and modest wage elasticities of labour supply in all the countries reviewed. This finding is consistent with stylized fact that those countries which inherited high labor force participation rates are relatively insensitive to changes in the wage rates. Apart from wages such factors as age, marital status, type of settlement, employee occupation, educational attainment, the presence of children and non-labour income are found to explain signi cantly labour supply behavior in the countries studied.