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

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

Abstract

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.

Suggested Citation

  • Lehmann, Hartmut & Muravyev, Alexander & Razzolini, Tiziano & Zaiceva, Anzelika, 2013. "The wage and non-wage costs of displacement in boom times: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1184-1201.
  • Handle: RePEc:eee:jcecon:v:41:y:2013:i:4:p:1184-1201
    DOI: 10.1016/j.jce.2013.02.004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hartmut Lehmann, 2014. "Worker displacement in transition economies and in China," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-20, May.
    2. Anna Lukiyanova, 2015. "Earnings inequality and informal employment in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 469-516, April.
    3. Hartmut Lehmann & Anzelika Zaiceva, 2013. "Informal Employment in Russia: Definitions, Incidence, Determinants and Labour Market Segmentation," OECD Economics Department Working Papers 1098, OECD Publishing.
    4. Léa Toulemon & Lexane Weber-Baghdiguian, 2016. "Long-term Impact of Job Displacement on Job Quality and Satisfaction: Evidence from Germany," Working Papers halshs-01418183, HAL.
    5. John S. Earle, 2014. "Impact of privatization on employment and earnings," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-93, October.
    6. H. Lehmann & A. Zaiceva, 2013. "Informal Employment in Russia: Incidence, Determinants and Labor Market Segmentation," Working Papers wp903, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. Léa Toulemon, 2016. "Job quality, Health Insurance and the Price of Medical Products: Essays in Applied Economics," Sciences Po publications info:hdl:2441/3018m4nhj18, Sciences Po.
    8. Lehmann, Hartmut & Zaiceva, Anzelika, 2013. "Re-defining Informal Employment and Measuring its Determinants: Evidence from Russia," IZA Discussion Papers 7844, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Costs of job loss; Worker displacement; Propensity score matching; Russia;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • P50 - Economic Systems - - Comparative Economic Systems - - - General

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