We use personnel data from a Russian firm for the years 1997 to 2002 to study thedeterminants of wages during transition. Our findings indicate that remuneration isnot predetermined by formal rules and a stable institutionalized structure of wages,but rather that local labor market conditions have a strong impact on wage setting atthe firm level. In particular, we document that real wages fall substantially during aperiod of high inflation and worsening local labor market conditions. Relative wagedecreases are most pronounced for employees who initially earned the highest rents.The process of rent extraction leads to a strong compression of real wages and realcompensation at the firm.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series ESCIRRU Working Papers with number
1.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.