Based on the dynamic labor demand model, we investigate wage-setting and employment behavior of enterprises during the period of transition. Using panel data on large-sized and medium-sized enterprises in the Novosibirsk region (1993–1998), we make an effort to identify the type of enterprises' behavior and to determine specific factors that affect it. We found that the type of behavior exhibited by these enterprises corresponds to the "right to manage" model's prediction, i.e., the contract curve coincides with the labor demand curve. We also found that wage-setting and employment behavior of enterprises was influenced by the dominant group of owners during the first period of transition (1994–1996). According to our analysis, workers appropriate some of the enterprise-specific rents in their wages, and the amount of this rent decreases if managers are the dominant group of owners.
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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number
01-04e.
Length: 74 pages Date of creation: 09 Nov 2001 Date of revision: Handle: RePEc:eer:wpalle:01-04e
Contact details of provider: Postal: EERC Research Network, Russia and CIS, 47, Nakhimovsky pr-t, suite 919, Moscow, 117418 Russia Phone: +7(095)332-4415 Fax: +1(202)478-1968 Web page: http://www.eerc.ru
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.:
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Other versions:
Hamermesh, Daniel S., 1987.
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Other versions:
Nickell, S & Vainiomaki, J & Wadhwani, S, 1994.
"Wages and Product Market Power,"
Economica,
London School of Economics and Political Science, vol. 61(244), pages 457-73, November.
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