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Citation Information

Type Journal Article - Journal of Comparative Economics
Title The wage and non-wage costs of displacement in boom times: Evidence from Russia
Author(s)
Volume 41
Issue 4
Publication (Day/Month/Year) 2013
Page numbers 1184-1201
URL http://www.sciencedirect.com/science/article/pii/S0147596713000279
Abstract
This paper analyzes the costs of job loss over the years of a booming economy, 2003–2008, using unique data from the Russian Longitudinal Monitoring Survey. In addition to analyzing standard labor market outcomes, such as forgone earnings, employment, hours worked and wage penalties, our unique data set allows us to investigate additional non-wage costs of displacement, in particular, fringe benefits, the propensity to have an informal employment relationship or a temporary contract. We find that displaced individuals face large foregone earnings following displacement, which are heterogeneous across education and ownership type of firm from which the worker separated. There is no evidence of wage penalties for re-employed displaced workers. However, we find an increased probability of working in informal or temporary jobs if previously displaced and a reduction in the number of benefits.

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