Dynamism and Inertia on the Russian Labour Market. A Segmentation Model
AbstractThis paper proposes an explanation of the puzzling coexistence of elements of inertia and dynamism on the Russian labour market using a segmentation model. Risl averse workers are differentiated according to their productivity. They face a trade-off between wages and access to social services provided by firms. The most productive workers leave their initial firm, contract on the spot labour market, and concentrate in the best performing firms. The model provides a possible interpretation of wage arrears which can be viewed as an element of an implicit contract between firms and less productive workers. We verify the predictions of the model using a panel dataset containing 13 628 firms, for 1992-1997.
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Bibliographic InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 1999-03.
Length: 25 pages
Date of creation: 1999
Date of revision:
Publication status: Published in Journal of Comparative Economics, 2001
RUSSIANS ; WAGES ; LABOUR MARKET;
Find related papers by JEL classification:
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
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