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Grime and Punishment: Job Insecurity and Wage Arrears in the Russian Federation

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Author Info
Hartmut Lehmann
Jonathan Wadsworth
Alessandro Asquisti

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Abstract

Using information from two complementary household survey data sets, we show that for many Russian workers, the dominant form of labor market adjustment in the transition process has been the delayed receipt of wages. Other forms of adjustment at the intensive margin have not been used much. Wage arrears are found across the private, state and budgetary sector. There are large regional variations in the incidence of wage arrears. Workers in the metropolitan center are significantly 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. As with the incidence of unemployment however, there is evidence that 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 paying wages in arrears if the outside labor market is sufficiently dynamic.

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File URL: http://www.econ.kuleuven.ac.be/licos/DP/DP1999/LICOSDP79.pdf
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Publisher Info
Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 7999.

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Length: 40 pages
Date of creation: 1999
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Handle: RePEc:lic:licosd:7999

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Related research
Keywords: Job Insecurity; Wage Arrears; Labor Markets in Transition;

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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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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. Richard Layard & Ansgar Richter, 1995. "How Much Unemployment is Needed for Restructuring?: The Russian Experience," CEP Discussion Papers dp0238, Centre for Economic Performance, LSE.
    Other versions:
  2. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997-2), pages 159-240. [Downloadable!]
  3. Shleifer, Andrei, 1997. "Government in transition," European Economic Review, Elsevier, vol. 41(3-5), pages 385-410, April. [Downloadable!] (restricted)
    Other versions:
  4. Foley, M.C., 1997. "Multiple Job Holding in Russia During Economic Transition," Papers 781, Yale - Economic Growth Center.
  5. A Aquisti & H Lehmann & Jonathan Wadsworth, 1998. "Grime and Punishment: Job Insecurity and Wage Arrears in the Russian Federation," CEP Discussion Papers dp0403, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  6. Foley, M.C., 1997. "Labor Market Dynamics in Russia," Papers 780, Yale - Economic Growth Center.
  7. G. Alfandari & M.E. Schaffer, 1996. ""Arrears" in the Russian Enterprise Sector," CERT Discussion Papers 9608, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
  8. Mark C. Foley, 1997. "Multiple Job Holding in Russia During Economic Transition," Working Papers 781, Economic Growth Center, Yale University. [Downloadable!]
  9. Mark C. Foley, 1997. "Labor Market Dynamics in Russia," Working Papers 780, Economic Growth Center, Yale University. [Downloadable!]
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