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An analysis of wage arrears of coal enterprises

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  • Kondratyeva Elena

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Abstract

This project utilizes panel data for 70 coal enterprises of Kuzbas region that were fully established and operated continuously between 1996 and 1998, and finds empirical evidence that negative supply shocks, liquidity problems in the region, efficiency of coal enterprises, and specific features of external opportunities in labor markets influence the occurrences of wage arrears. This work draws several major conclusions for Kuzbas region: (1) wage arrears have negative relation to demand for the output of the enterprise and are sensitive to efficiency of the enterprise, which is measured through profit/loss variable; (2) high regional average for wage arrears increases the probability that wage underpayments in a particular enterprise in this region have chronic nature; (3) the firms making a decision to withhold wages are taking into account the volume of sales and wage levels in the enterprise in previous periods. Also the form of ownership exerts the influence on the decision delay payments.

Suggested Citation

  • Kondratyeva Elena, 2003. "An analysis of wage arrears of coal enterprises," EERC Working Paper Series 00-058e, EERC Research Network, Russia and CIS.
  • Handle: RePEc:eer:wpalle:00-058e
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    References listed on IDEAS

    as
    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.
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    Keywords

    Russia; coal enterprises; upply shocks; liquidity; efficiency; labor markets;

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General

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