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The wage and non-wage costs of displacement in boom times: Evidence from Russia

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  • Lehmann, Hartmut
  • Muravyev, Alexander
  • Razzolini, Tiziano
  • Zaiceva, Anzelika

Abstract

This paper analyzes the costs of job loss over the years of a booming economy, 2003–2008, using unique data from the Russian Longitudinal Monitoring Survey. In addition to analyzing standard labor market outcomes, such as forgone earnings, employment, hours worked and wage penalties, our unique data set allows us to investigate additional non-wage costs of displacement, in particular, fringe benefits, the propensity to have an informal employment relationship or a temporary contract. We find that displaced individuals face large foregone earnings following displacement, which are heterogeneous across education and ownership type of firm from which the worker separated. There is no evidence of wage penalties for re-employed displaced workers. However, we find an increased probability of working in informal or temporary jobs if previously displaced and a reduction in the number of benefits.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 41 (2013)
Issue (Month): 4 ()
Pages: 1184-1201

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Handle: RePEc:eee:jcecon:v:41:y:2013:i:4:p:1184-1201

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Web page: http://www.elsevier.com/locate/inca/622864

Related research

Keywords: Costs of job loss; Worker displacement; Propensity score matching; Russia;

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References

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  1. V. Gimpelson & R. Kapeliushnikov & A. Lukiyanova, 2009. "Employment Protection Legislation in Russia: Regional Enforcement and Labour Market Outcomes," ESCIRRU Working Papers 11, DIW Berlin, German Institute for Economic Research.
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  4. Hartmut Lehmann & Tiziano Razzolini & Anzelika Zaiceva, 2012. "Job Separations, Job loss and Informality in the Russian Labor Market," Department of Economics 0674, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
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  8. Steven J. Davis & Till Von Wachter, 2011. "Recessions and the Costs of Job Loss," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(2 (Fall)), pages 1-72.
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  14. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  15. Kenneth A. Couch & Dana W. Placzek, 2010. "Earnings Losses of Displaced Workers Revisited," American Economic Review, American Economic Association, vol. 100(1), pages 572-89, March.
  16. Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1265-1306, August.
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Cited by:
  1. Lehmann, Hartmut & Zaiceva, Anzelika, 2013. "Re-defining Informal Employment and Measuring its Determinants: Evidence from Russia," IZA Discussion Papers 7844, Institute for the Study of Labor (IZA).
  2. H. Lehmann & A. Zaiceva, 2013. "Informal Employment in Russia: Incidence, Determinants and Labor Market Segmentation," Working Papers wp903, Dipartimento Scienze Economiche, Universita' di Bologna.

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