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Non-wage benefits, costs of turnover, and labor attachment: evidence from Russian firms

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Author Info

  • Tuuli Juurikkala

    ()
    (Bank of Finland Institute for Economies in Transition)

  • Olga Lazareva

    ()
    (CEFIR)

Abstract

Just as in established market economies, many Russian firms provide non-wage benefits such as housing, medical care or day care to their employees. Interpreting this as a strategic choice of firms in an imperfect labor market, this paper examines unique survey data for 404 large and medium-size industrial establishments from 40 Russian regions. We find strong evidence that Russian industrial firms use social services to reduce the costs of labor turnover in the face of tight labor markets. The strongest effect is observed for blue-collar workers. We also find that the share of non-monetary compensation decreases with improved access to local social services.

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Bibliographic Info

Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0062.

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Length: 22 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:cfr:cefirw:w0062

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Keywords: Non-wage benefits; labor turnover; labor attachment; Russia;

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References

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Citations

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Cited by:
  1. Juurikkala, Tuuli & Lazareva, Olga, 2006. "Lobbying at the local level: Social assets in Russian firms," BOFIT Discussion Papers 1/2006, Bank of Finland, Institute for Economies in Transition.
  2. Fidrmuc, Jarko & Senaj, Matus, 2012. "Human Capital, Consumption, and Housing Wealth in Transition," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62058, Verein für Socialpolitik / German Economic Association.
  3. Jarko FIDRMUC & Matus SENAJ, 2014. "Income, Schooling and Housing Wealth during Economic Reforms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(2), pages 160-176, March.

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