Lehmann, Hartmut () (Heriot-Watt University, Edinburgh, United Kingdom; IZA, Bonn, Germany; WDI, Ann Arbor, Michigan) Wadsworth, Jonathan (Centre for Economic Performance, London School of Economics, London; Royal Holloway College, University of London) Acquisti, Alessandro (School of Information Management and Systems, University of California)
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Using information from two complementary household survey data sets, we show that the dominant form of labor market adjustment in the Russian transition process has been the delayed receipt of wages. More than half the workforce is experiencing some form of disruption to their pay. Wage arrears are found across the private, state and budgetary sector. Workers in the metropolitan center are less affected by delayed and incomplete wage payments than workers in the provinces. There is less evidence that individual characteristics contribute much toward the incidence of wage arrears, but the persistence of arrears is concentrated on a subset of the working population. We show that workers can only exercise the exit option of a job quit from a firm not paying wages in full or on time if the outside labor market is sufficiently dynamic.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
65.
Find related papers by JEL classification: J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
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