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

Author

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  • Tuuli Juurikkala

    (Bank of Finland Institute for Economies in Transition)

  • Olga Lazareva

    (CEFIR)

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.

Suggested Citation

  • Tuuli Juurikkala & Olga Lazareva, 2006. "Non-wage benefits, costs of turnover, and labor attachment: evidence from Russian firms," Working Papers w0062, New Economic School (NES).
    • Handle: RePEc:abo:neswpt:w0062
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    as
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    Citations

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    Cited by:

    1. Fidrmuc, Jarko & Senaj, Matus, 2012. "Human Capital, Consumption, and Housing Wealth in Transition," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62058, Verein für Socialpolitik / German Economic Association.
    2. Haaparanta, Pertti & Juurikkala, Tuuli, 2007. "Bribes and local fiscal autonomy in Russia," BOFIT Discussion Papers 12/2007, Bank of Finland, Institute for Economies in Transition.
    3. Haaparanta, Pertti & Juurikkala, Tuuli, 2007. "Bribes and local fiscal autonomy in Russia," BOFIT Discussion Papers 12/2007, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Tuuli Juurikkala & Olga Lazareva, 2006. "Lobbying at the local level: social assets in Russian firms," Working Papers w0061, New Economic School (NES).
    5. repec:zbw:bofitp:2007_012 is not listed on IDEAS
    6. Zhuravleva, Nadezhda, 2021. "How Bad Is Labor Market Concentration?: Evidence From Soviet (Urban) Satellites," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242405, Verein für Socialpolitik / German Economic Association.
    7. repec:zbw:bofitp:2006_001 is not listed on IDEAS
    8. Jeremy Morris & Sarah Hinz, 2017. "Free automotive unions, industrial work and precariousness in provincial Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 29(3), pages 282-296, July.
    9. Juurikkala, Tuuli & Lazareva, Olga, 2006. "Lobbying at the local level: social assets in Russian firms," BOFIT Discussion Papers 1/2006, Bank of Finland Institute for Emerging Economies (BOFIT).
    10. Vladimir Sokolov & Laura Solanko, 2017. "Political Influence, Firm Performance and Survival," HSE Working papers WP BRP 60/FE/2017, National Research University Higher School of Economics.
    11. Sokolov, Vladimir & Solanko, Laura, 2016. "Political influence, firm performance and survival," BOFIT Discussion Papers 20/2016, Bank of Finland, Institute for Economies in Transition.
    12. repec:zbw:bofitp:2016_020 is not listed on IDEAS
    13. Tuuli Juurikkala & Olga Lazareva, 2006. "Lobbying at the local level: social assets in Russian firms," Working Papers w0061, Center for Economic and Financial Research (CEFIR).
    14. Jarko FIDRMUC & Matus SENAJ, 2014. "Income, Schooling and Housing Wealth during Economic Reforms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(2), pages 160-176, March.

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    More about this item

    Keywords

    Non-wage benefits; labor turnover; labor attachment; Russia;
    All these keywords.

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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