Labor Market Uncertainty and Private Sector Labor Supply in Russia

Steven Stillman

No 359, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

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.

Keywords: Private sector; labor supply; Russia; uncertainty; intra-household (search for similar items in EconPapers)
JEL-codes: C35 D10 J23 P36 (search for similar items in EconPapers)
Pages: pages
Date: 2000-11-01
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (3)

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Working Paper: Labor Market Uncertainty and Private Sector Labor Supply in Russia (2000)
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