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

  • Lehmann, Hartmut
  • Wadsworth, Jonathan
  • Acquisti, Alessandro

Using information from two complementary household survey datasets, we show that the dominant form of labour market adjustment in the Russian transition process has been the delayed receipt of wages. More than half the workforce is experiencing some form of disruption to their pay. Wage arrears are found across the private, state and budgetary sector. Workers in the metropolitan centre are 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, but 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 not paying wages in full or on time if the outside labour market is sufficiently dynamic.

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Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 27 (1999)
Issue (Month): 4 (December)
Pages: 595-617

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Handle: RePEc:eee:jcecon:v:27:y:1999:i:4:p:595-617
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622864

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  1. 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.
  2. Hartmut Lehmann & Jonathan Wadsworth & Alessandro Acquisti, 1998. "Grime and punishment: job insecurity and wage arrears in the Russian Federation," LSE Research Online Documents on Economics 20251, London School of Economics and Political Science, LSE Library.
  3. Foley, M.C., 1997. "Multiple Job Holding in Russia During Economic Transition," Papers 781, Yale - Economic Growth Center.
  4. Shleifer, Andrei, 1997. "Government in transition," European Economic Review, Elsevier, vol. 41(3-5), pages 385-410, April.
  5. Lehmann, Hartmut & Wadsworth, Jonathan & Acquisti, Alessandro, 1999. "Grime and Punishment: Insecurity and Wage Arrears in the Russian Federation," IZA Discussion Papers 65, Institute for the Study of Labor (IZA).
  6. Mark C. Foley, 1997. "Labor Market Dynamics in Russia," Working Papers 780, Economic Growth Center, Yale University.
  7. Lehmann, Hartmut & Wadsworth, Jonathan, 1999. "Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain," IZA Discussion Papers 90, Institute for the Study of Labor (IZA).
  8. A. Richter & M.E. Schaffer, 1996. "The Performance of De Novo Private Firms in Russian Manufacturing," CERT Discussion Papers 9610, Centre for Economic Reform and Transformation, Heriot Watt University.
  9. Foley, M.C., 1997. "Labor Market Dynamics in Russia," Papers 780, Yale - Economic Growth Center.
  10. Paul Gregg & Jonathan Wadsworth, 1996. "Mind the Gap," CEP Discussion Papers dp0303, Centre for Economic Performance, LSE.
  11. Richard Layard & Ansgar Richter, 1995. "How Much Unemployment is Needed for Restructuring?: The Russian Experience," CEP Discussion Papers dp0238, Centre for Economic Performance, LSE.
  12. Mark C. Foley, 1997. "Multiple Job Holding in Russia During Economic Transition," Working Papers 781, Economic Growth Center, Yale University.
  13. 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(2), pages 159-240.
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