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Family labor supply and wage shocks in an emerging market: Evidence from Russia

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  • Zamnius, Alexey

Abstract

We estimate labor supply elasticities for men and women in Russia using a dynamic two-earner life-cycle model with wage shocks and intra-household consumption smoothing. A three-stage estimation procedure accounts for measurement error and distinguishes between permanent and transitory shocks. We find significant gender differences in wage volatility and labor supply responses. Intra-household insurance dominates individual responses, especially among low-income households. Labor supply is more elastic among high-income and highly educated individuals. The findings contribute to the labor supply literature in emerging markets and have implications for tax policy, suggesting that greater tax progressivity can enhance welfare with minimal efficiency losses.

Suggested Citation

  • Zamnius, Alexey, 2026. "Family labor supply and wage shocks in an emerging market: Evidence from Russia," Emerging Markets Review, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:ememar:v:73:y:2026:i:c:s1566014126000543
    DOI: 10.1016/j.ememar.2026.101490
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