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Dynamism and Inertia on the Russian Labour Market. A Segmentation Model

Author

Listed:
  • Grosfeld, I.
  • Senik-Leygonie, C.
  • Verdier, T.
  • Kolenikov, S.
  • Paltseva, E.

Abstract

This paper proposes an explanation of the puzzling coexistence of elements of inertia and dynamism on the Russian labour market using a segmentation model. Risl averse workers are differentiated according to their productivity. They face a trade-off between wages and access to social services provided by firms. The most productive workers leave their initial firm, contract on the spot labour market, and concentrate in the best performing firms. The model provides a possible interpretation of wage arrears which can be viewed as an element of an implicit contract between firms and less productive workers. We verify the predictions of the model using a panel dataset containing 13 628 firms, for 1992-1997.

Suggested Citation

  • Grosfeld, I. & Senik-Leygonie, C. & Verdier, T. & Kolenikov, S. & Paltseva, E., 1999. "Dynamism and Inertia on the Russian Labour Market. A Segmentation Model," DELTA Working Papers 1999-03, DELTA (Ecole normale supérieure).
  • Handle: RePEc:del:abcdef:1999-03
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    References listed on IDEAS

    as
    1. Kockesen, Levent & Ok, Efe A. & Sethi, Rajiv, 2000. "The Strategic Advantage of Negatively Interdependent Preferences," Journal of Economic Theory, Elsevier, vol. 92(2), pages 274-299, June.
    2. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
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    More about this item

    Keywords

    RUSSIANS ; WAGES ; LABOUR MARKET;

    JEL classification:

    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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