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Labor Market Uncertainty and Private Sector Labor Supply in Russia

Author

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  • Steve Stillman

Abstract

The development of a vibrant private sector has been one of the key failures of the transitional period in Russia. This paper develops a theoretical and empirical model of individual labor supply behavior under uncertainty, and estimates this model using data from the Russian Longitudinal Monitoring Survey for the years 1994 - 1996 & 1998. As hypothesized, a decrease in private sector earnings variability is estimated to increase the likelihood of private sector employment for individuals with constrained consumption smoothing ability. Evidence of ex-ante intra-household risk sharing is also found with individuals reducing their exposure to uncertainty by diversifying the portfolio of jobs held by their household.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Steve Stillman, 2000. "Labor Market Uncertainty and Private Sector Labor Supply in Russia," Working Papers DRU-2393-NICHD, RAND Corporation.
    • Handle: RePEc:ran:wpaper:dru-2393-nichd
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    File URL: https://www.rand.org/content/dam/rand/pubs/drafts/2008/DRU2393.pdf
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    Cited by:

    1. Ms. Sònia Muñoz, 2006. "Wealth Effects in Europe: A Tale of Two Countries (Italy and the United Kingdom)," IMF Working Papers 2006/030, International Monetary Fund.
    2. Steven Stillman, 2000. "The Determinants of Private and Government Sector Earnings in Russia," Working Papers 00-17, RAND Corporation.
    3. repec:bla:etrans:v:11:y:2003-03:i:1:p:67-91 is not listed on IDEAS

    More about this item

    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D10 - Microeconomics - - Household Behavior - - - General

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