Dynamism and Inertia on the Russian Labour Market

Irena Grosfeld, Sénik-Leygonie, Claudia, Thierry Verdier, Stanislav Kolenikov and Elena Paltseva

No 2224, CEPR Discussion Papers from Centre for Economic Policy Research

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. Risk-averse workers are differentiated according to their productivity. They face a trade-off between wages and access to social services provided by the firm. 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 test some of the predictions of the model using a panel dataset containing 13,410 firms, for 1993–1997.

Keywords: Transition; Russia; Labour market; wage arrears (search for similar items in EconPapers)
JEL-codes: C23 D82 J00 L20 P52 (search for similar items in EconPapers)
Date: 1999-09
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://cepr.org/publications/DP2224 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:2224

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP2224

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().