Non-wage benefits, costs of turnover, and labor attachment: evidence from Russian firms

Tuuli Juurikkala () and Olga Lazareva
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Tuuli Juurikkala: Bank of Finland Institute for Economies in Transition

No w0062, Working Papers from New Economic School (NES)

Abstract: Just as in established market economies, many Russian firms provide non-wage benefits such as housing, medical care or day care to their employees. Interpreting this as a strategic choice of firms in an imperfect labor market, this paper examines unique survey data for 404 large and medium-size industrial establishments from 40 Russian regions. We find strong evidence that Russian industrial firms use social services to reduce the costs of labor turnover in the face of tight labor markets. The strongest effect is observed for blue-collar workers. We also find that the share of non-monetary compensation decreases with improved access to local social services.

Keywords: Non-wage benefits; labor turnover; labor attachment; Russia (search for similar items in EconPapers)
JEL-codes: J32 J33 J42 J63 M52 P31 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: Non-wage benefits, costs of turnover, and labor attachment: evidence from Russian firms (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:abo:neswpt:w0062

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