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Well-Being and Wage Arrears in Russian Panel Data

Author

Listed:
  • Andrew Clark

    (CNRS-LEO, University of Orléans)

  • Mathilde Maurel

    (CNRS-ROSES, University of Paris-1 Panthéon-Sorbonne, Centre François Simiand and CEPR)

Abstract

This paper attempts to estimate the impact of wage arrears on subjective well being, as measured by the RLMS (Russian Longitudinal Monitoring Survey). This latter is a comprehensive survey, conducted from 1992 up to 1998, on a representative sample of Russian households and individuals. The results are unambiguous: working with wage arrears implies a clear fall in satisfaction. We are able to calculate the shadow price of wage arrears, that is the increase in wages which would place an individual with wage arrears on the same indifference curve as an individual without such arrears. Another result, on the face of it more puzzling, is that the level of satisfaction provided by a job with arrears is lower than that provided by inactivity (although higher than that provided by unemployment). We suggest some explanations which we will test in further work. Sub-regressions show that the psychological impact of wage arrears is greater for men and less well-educated workers, and smaller for women and better-educated workers.

Suggested Citation

  • Andrew Clark & Mathilde Maurel, 2001. "Well-Being and Wage Arrears in Russian Panel Data," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 5(2), pages 179-183.
    • Handle: RePEc:scn:025886:16537841
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    Cited by:

    1. Selezneva, Ekaterina, 2011. "Surveying transitional experience and subjective well-being: Income, work, family," Economic Systems, Elsevier, vol. 35(2), pages 139-157, June.
    2. Norton, Edward C. & Nizalova, Olena & Murtazashvili, Irina, 2018. "Does past unemployment experience explain the transition happiness gap?," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1104-1121.
    3. Ekaterina Kalugina & Catherine Sofer & Natalia Radtchenko, 2009. "Intra-household inequality in transitional Russia," Review of Economics of the Household, Springer, vol. 7(4), pages 447-471, December.
    4. Ekaterina Kalugina & Boris Najman, 2003. "Travail et pauvreté en Russie : évaluations objectives et perceptions subjectives," Économie et Statistique, Programme National Persée, vol. 367(1), pages 83-100.

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