Re-employment Probabilities and Wage Offer Function for Russian Labor Market
AbstractThis research addresses labor market transformation in Russia. It elaborates on the theory of job search and focuses on the following issues: (1) evaluation of the re-employment probabilities (hazard rates) for different socio-economic groups; and (2) estimation of wage offer distribution for the transforming labor market. We use data from Phase II of the Russia Longitudinal Monitoring Survey (RLMS) to estimate the employment and wage offer functions for Russian workers who found a job after having been unemployed. We take into account the effectiveness of search strategies used and correct for truncation in wage offers. The binomial logit-OLS estimation method with sample selection bias correction on pooled data from Rounds 5-9 of RLMS is used. The factors considered are sex, education, experience, sector of employment and search methods’ success rate, which are hypothesized to capture the main determinants of job search behavior. The results show that individual characteristics, as well as the search method used, play a decisive role in the re-employment prospects of the unemployed. The private sector employment level is estimated to have the most powerful positive effect on the wage offer function. Russian women are less likely than men to find a job after being unemployed, and wage offers for women are estimated to be lower than for men.
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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 547.
Length: 26 pages
Date of creation: 01 Feb 2003
Date of revision:
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Russia; Transition; Job Search; Wage Offer Function; Hazard Rates;
Find related papers by JEL classification:
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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