Dynamism and Inertia on the Russian Labour Market: A Model of Segmentation
Thierry Verdier (),
Stanislav Kolenikov () and
Elena Paltseva ()
No 246, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan
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; labour market; wage arrears; Russia (search for similar items in EconPapers)
JEL-codes: C23 D82 J00 L2 P52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Working Paper: Dynamism and Inertia on the Russian Labour Market: A Model of Segmentation (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:1999-246
Access Statistics for this paper
More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().