Participation, Discouraged Workers and Job Search: Evidence for Kosova

In this paper, we investigate the labour supply determinants in Kosova, a high unemployment and transition economy. Our approach takes into account demand-side restrictions of labour supply that are typical in high unemployment economies and pays particular attention to gender differences. We assess the appropriateness of the ILO guidelines in determining an individual's labour force status in developing/high unemployment economies, such as Kosova. In addition, we investigate the determinants of engaging in job search and find evidence that the more educated show a stronger attachment to the labour market. This is the first systematic study of these issues in this post-socialist and post-conflict economy.