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Labor Supply in Russia: Studying the Role of Outside Options of the Employed

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Author Info
Matveenko Vladimir ()
Saveliev Peter ()

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Abstract

Based on the panel data of the Russian Longitudinal Monitoring Survey (RLMS) for years 1994–2000 the factors determining men's and women's labor supply at the primary job have been identified. A theoretical model of labor supply for two-sector economy (primary job sector and moonlighting sector) is proposed. The two sectors are heterogeneous at hourly wage rates and at the volume of social benefits and privileges. It is shown theoretically that the moonlighting wage rate is a negative factor for labor supply at the primary job; it is true not only for moonlighters but also for those who are employed at a single job in the primary employment sector. This result is confirmed econometrically for men but not for women. It is also shown that the wage rate and social benefits at the primary job are positive factors for men's and women's labor supply at the primary job, while the State ownership is a negative factor of their labor supply.

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Publisher Info
Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 00-215e.

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Date of creation: 26 May 2005
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Handle: RePEc:eer:wpalle:00-215e

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Postal: EERC Research Network, Russia and CIS, 47, Nakhimovsky pr-t, suite 919, Moscow, 117418 Russia
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Related research
Keywords: Russia; labor supply; moonlighting; social benefits; microeconomic models; Heckman's model; panel regressions;

Other versions of this item:

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models

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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.:
  1. Razumova Tatyana & Roshchin Sergey, 2002. "Secondary Employment in Russia Labor Supply Modeling," EERC Working Paper Series 02-07e, EERC Research Network, Russia and CIS. [Downloadable!]
  2. Reuben Gronau & R. Layard, . "Home Production - A Survey," University of Chicago - Population Research Center 85-2, Chicago - Population Research Center.
  3. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier. [Downloadable!] (restricted)
  4. Jean Kimmel & Karen Smith Conway, 1995. "Who Moonlights and Why?: Evidence from the SIPP," Staff Working Papers 95-40, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  5. Bouev Maxim & Matveenko Vladimir & Vostroknutova Ekaterina, 1998. "Transformational Decline and Preconditions of Growth in Russia," EERC Working Paper Series 98-03e, EERC Research Network, Russia and CIS. [Downloadable!]
  6. Smith Conway, Karen & Kimmel, Jean, 1998. "Male labor supply estimates and the decision to moonlight," Labour Economics, Elsevier, vol. 5(2), pages 135-166, June. [Downloadable!] (restricted)
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