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How do workers fare during transition? Perceptions of job insecurity among Russian workers, 1995-2004

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  • Linz, Susan J.
  • Semykina, Anastasia

Abstract

Labor market conditions deteriorated substantially in the1990s during Russia's transition from plan to market, generating pervasive and prolonged economic insecurity. Our objective is to document perceptions of job insecurity among Russian workers over the course of the transition period and evaluate whether these perceptions are consistent with actual economic outcomes. We use RLMS data to examine perceptions of job insecurity among Russian workers between 1995 and 1998, when economic conditions were relatively chaotic, and between 2000 and 2004, when economic conditions had stabilized. We employ two measures to assess worker perceptions of job insecurity: one reflects workers' concerns about job loss, and the second evaluates their concern about ability to find employment in case of a lay-off. Our descriptive analysis focuses on workers who perceived their job situation as insecure during this period, categorizing workers based on their socio-demographic characteristics, job characteristics and region of residence. Using ordered probit analysis, we study conditional distributions of our measures of perceived job insecurity, and how those varied by worker characteristics, current economic conditions, and over time. Similar to studies conducted in developed market economies, we find that perceptions of job security are higher among workers with more education, among workers with status positions (supervisory responsibilities), and among workers who live in locales that are not adversely affected by economic conditions. Unlike these studies, however, we find that perceptions differ between men and women; age is negatively, rather than positively, correlated with confidence in keeping one's current job; and longer job tenure does not improve perceptions of job security. We find that worker perceptions are largely consistent with actual labor market conditions. Specifically, perceptions of job security were very low in years of major economic change and uncertainty (1995-1998), but improved during the years of relative economic stability (2000-2004). In both periods, workers with relatively weak positions in the labor market tended to have lower perceptions of job insecurity.

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  • Linz, Susan J. & Semykina, Anastasia, 2008. "How do workers fare during transition? Perceptions of job insecurity among Russian workers, 1995-2004," Labour Economics, Elsevier, vol. 15(3), pages 442-458, June.
  • Handle: RePEc:eee:labeco:v:15:y:2008:i:3:p:442-458
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    References listed on IDEAS

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    Cited by:

    1. Otrachshenko, Vladimir & Popova, Olga & Tavares, José, 2016. "Psychological Costs of Currency Transition: Evidence from Euro Adoption," CEPR Discussion Papers 11071, C.E.P.R. Discussion Papers.
    2. Olga Demidova & Marcello Signorelli, 2010. "The Impact of Crises on Youth Unemployment of Russian Regions: An Empirical Analysis," Quaderni del Dipartimento di Economia, Finanza e Statistica 78/2010, Università di Perugia, Dipartimento Economia.
    3. Pierre Brochu & Louis-Philippe Morin, 2011. "Union Membership and Perceived Job Insecurity: 30 Years of Evidence from the American General social Survey," Working Papers 1106E, University of Ottawa, Department of Economics.
    4. Artjoms Ivlevs, 2014. "Economic Insecurity in Transition: A Primary Commodities Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 117-140, May.
    5. Sonja C. Kassenboehmer & Sonja G. Schatz, 2014. "Re-employment Expectations and the Eye of Providence," SOEPpapers on Multidisciplinary Panel Data Research 697, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Vladimir Gimpelson & Aleksey Oshchepkov, 2012. "Does more unemployment cause more fear of unemployment?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-26, December.
    7. repec:got:cegedp:90 is not listed on IDEAS
    8. Michael Dietrich, 2010. "Efficiency and profitability: a panel data analysis of UK manufacturing firms, 1993-2007," Working Papers 2010003, The University of Sheffield, Department of Economics, revised Jan 2010.
    9. Dickerson, Andy & Green, Francis, 2012. "Fears and realisations of employment insecurity," Labour Economics, Elsevier, vol. 19(2), pages 198-210.
    10. Geishecker, Ingo, 2009. "Perceived job insecurity and well-being revisited: Towards conceptual clarity," Center for European, Governance and Economic Development Research Discussion Papers 90, University of Goettingen, Department of Economics.
    11. Ingo Geishecker, 2010. "Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity," SOEPpapers on Multidisciplinary Panel Data Research 282, DIW Berlin, The German Socio-Economic Panel (SOEP).
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    13. Otrachshenko, Vladimir & Popova, Olga & Tavares, José, 2016. "Psychological costs of currency transition: evidence from the euro adoption," European Journal of Political Economy, Elsevier, vol. 45(C), pages 89-100.
    14. Riccardo Rovelli & Anzelika Zaiceva, 2013. "Did support for economic and political reforms increase during the post-communist transition, and if so, why?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(2), pages 193-240, April.
    15. Kassenboehmer, Sonja C. & Schatz, Sonja G., 2017. "Re-employment expectations and realisations: Prediction errors and behavioural responses," Labour Economics, Elsevier, vol. 44(C), pages 161-176.
    16. Masanori Kuroki, 2016. "An Analysis of Perceptions of Job Insecurity among White and Black Workers in the United States: 1977–2012," The Review of Black Political Economy, Springer;National Economic Association, vol. 43(3), pages 289-300, December.

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