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The wage and non-wage costs of displacement in boom times: Evidence from Russia

  • Lehmann, Hartmut
  • Muravyev, Alexander
  • Razzolini, Tiziano
  • Zaiceva, Anzelika

This paper analyzes the costs of job loss over the years of a booming economy, 2003–2008, using unique data from the Russian Longitudinal Monitoring Survey. In addition to analyzing standard labor market outcomes, such as forgone earnings, employment, hours worked and wage penalties, our unique data set allows us to investigate additional non-wage costs of displacement, in particular, fringe benefits, the propensity to have an informal employment relationship or a temporary contract. We find that displaced individuals face large foregone earnings following displacement, which are heterogeneous across education and ownership type of firm from which the worker separated. There is no evidence of wage penalties for re-employed displaced workers. However, we find an increased probability of working in informal or temporary jobs if previously displaced and a reduction in the number of benefits.

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

Volume (Year): 41 (2013)
Issue (Month): 4 ()
Pages: 1184-1201

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Handle: RePEc:eee:jcecon:v:41:y:2013:i:4:p:1184-1201
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622864

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  7. Igor Filatotchev & Mike Wright & Michael Bleaney, 1999. "Privatization, insider control and managerial entrenchment in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 481-504, July.
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  16. Eichhorst, Werner & Feil, Michael & Braun, Christoph, 2008. "What have we learned? Assessing labor market institutions and indicators," IAB Discussion Paper 200822, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  17. Hartmut Lehmannan & Tiziano Razzolini & Anzelika Zaiceva, 2012. "Job separations, job loss and informality in the Russian labor marke," Center for Economic Research (RECent) 076, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
  18. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications, The World Bank, number 6730, August.
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