Labor Market Uncertainty and Private Sector Labor Supply in Russia
AbstractThe development of a vibrant private sector has been one of the key failures of the transitional period in Russia. This paper develops a theoretical and empirical model of individual labor supply behavior under uncertainty, and estimates this model using data from the Russian Longitudinal Monitoring Survey for the years 1994 - 1996 & 1998. As hypothesized, a decrease in private sector earnings variability is estimated to increase the likelihood of private sector employment for individuals with constrained consumption smoothing ability. Evidence of ex-ante intra-household risk sharing is also found with individuals reducing their exposure to uncertainty by diversifying the portfolio of jobs held by their household.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 359.
Date of creation: 01 Nov 2000
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Private sector; labor supply; Russia; uncertainty; intra-household;
Other versions of this item:
- Steven Stillman, 2000. "Labor Market Uncertainty and Private Sector Labor Supply in Russia," Working Papers 00-16, RAND Corporation Publications Department.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D10 - Microeconomics - - Household Behavior - - - General
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