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Grime And Punishment: Job Insecurity And Wage Arrears in The Russian Federation

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Author Info
Lehmann, Hartmut
Wadsworth, Jonathan
Acquisti,Alessandro

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Abstract

The initial years of transition in the Russian federation have been characterised by relatively smaller falls in employment than observed in other reform- orientated countries of Eastern Europe. We show that for many Russian workers, the dominant form of labour market adjustment is instead the delayed receipt of wages. There are large regional variations in the incidence of wage arrears. Workers in the metropolitan centre 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, though unobserved heterogeneity has some role to play. Wage arrears are found across the skill distribution. 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 labour market is sufficiently dynamic.

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Publisher Info
Paper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number 986.

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Date of creation: Jan 1998
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Handle: RePEc:tcd:tcduet:986

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Find related papers by JEL classification:
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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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