Ukraine - Labor market and policy response

This report notes that the labor market in the Ukraine is one of low productivity, and low wages. This study analyzes the Ukrainian situation, taking into account similar experiences of other countries, as well as challenges caused by the world-wide recenssion, and presents a potential, multi-pronged approach to tackling the main problems. It advises on policy choices concerning labor management, reduction of payroll taxation, real estate tax for businesses, and minimum wage reduction for certain groups, such as teenage workers, that may improve the situation .The government should take measures that are specific to particular firms or (groups of) workers, such as targeted subsidies, that allow viable firms to survive a strong temporary shock, while forcing these firms to restructure and emerge from the crises stronger (though perhaps smaller). The analysis concludes that adopting such innovative measures may improve the difficult situation currently faced by Ukrainian workers, firms and government