How Do Workers Fare During Transition? Perceptions of Job Insecurity among Russian Workers, 1995-2004

Labor market conditions deteriorated substantially in the1990s during Russia’s transition from plan to market, generating pervasive and prolonged economic insecurity. Our objective is to document perceptions of job insecurity among Russian workers over the course of the transition period and evaluate whether these perceptions are consistent with actual economic outcomes. We use RLMS data to examine perceptions of job insecurity among Russian workers between 1995 and 1998, when economic conditions were relatively chaotic, and between 2000 and 2004, when economic conditions had stabilized. We employ two measures to assess worker perceptions of job insecurity: one reflects workers’ concerns about job loss, and the second evaluates their concern about ability to find employment in case of a lay-off. Our descriptive analysis focuses on workers who perceived their job situation as insecure during this period, categorizing workers based on their socio-demographic characteristics, job characteristics and region of residence. Using ordered probit analysis, we study conditional distributions of our measures of perceived job insecurity, and how those varied by worker characteristics, current economic conditions, and over time. Similar to studies conducted in developed market economies, we find that perceptions of job security are higher among workers with more education, among workers with status positions (supervisory responsibilities), and among workers who live in locales that are not adversely affected by economic conditions. Unlike these studies, however, we find that perceptions differ between men and women; age is negatively, rather than positively, correlated with confidence in keeping one’s current job; and longer job tenure does not improve perceptions of job security. We find that worker perceptions are largely consistent with actual labor market conditions. Specifically, perceptions of job security were very low in years of major economic change and uncertainty (1995-1998), but improved during the years of relative economic stability (2000-2004). In both periods, workers with relatively weak positions in the labor market tended to have lower perceptions of job insecurity.http://deepblue.lib.umich.edu/bitstream/2027.42/57251/1/wp871 .pd

Вектор соціального розвитку України в контексті перспектив побудови інноваційної економіки

The article is devoted to the problems of social and human development in the context of transformation of modern economy into innovative one. Theoretical analysis of the main directions of human development have been carried out. The dynamics of the Human Development Index and the interdependence of its components at the example of Ukrainian regions have been analyzed. The dependence of the Human Development Index mainly on its social component has been revealed by modeling. The necessity to choose the vector of social development according to the priorities of human development in Ukraine at the stage of creation of innovative economy has been proved. Стаття присвячена проблемам соціального розвитку і розвитку людини в контексті перетворення сучасної економіки на інноваційну. Проведено теоретичний аналіз основних напрямків людського розвитку. Динаміка індексу розвитку людського потенціалу і взаємопов'язаність його компонентів були проаналізовані на прикладі регіонів України. Моделлю було показано, що індекс розвитку людського потенціалу в першу чергу залежить від соціальних компонентів. Доведено необхідність вибору вектора соціального розвитку в контексті пріоритетів людського розвитку на етапі становлення інноваційної економіки

Gender Differences in Personality and Earnings: Evidence from Russia

Does personality affect earnings? If so, are there gender differences in personality that explain part of the gender wage gap? We use survey data collected from over 2,600 Russian employees between 2000 and 2003 to evaluate the impact on earnings of two personality traits: locus of control (Rotter 1966) and challenge-affiliation (Hill et al. 1985). We find that gender differences in personality traits are significant. Men are more likely to exhibit an internal locus of control and need for challenge, while women are more likely to exhibit an external locus of control and need for affiliation. Moreover, there are differences in the effect of personality on earnings by gender – women’s earnings are affected by personality, while men’s earnings are not. Among participating employees in our study, the “unexplained” portion of the gender wage gap falls by as much as 12% when personality traits are included.http://deepblue.lib.umich.edu/bitstream/2027.42/40177/3/wp791.pd

Attitudes and Performance: An Analysis of Russian Workers

This paper investigates the relationship between locus of control and performance among Russian employees, using survey data collected at 28 workplaces in 2002 in Taganrog and at 47 workplaces in 2003 in Ekaterinburg. We develop a measure that allows us to categorize the Russian employees participating in our survey as exhibiting an internal or external locus of control. We then assess the extent to which there are significant differences between “internals” and “externals” in work-related attitudes that may affect performance. In particular, we focus on (1) attitudes about outcomes associated with hard work, (2) level of job satisfaction, (3) expectation of receiving a desired reward, and (4) loyalty to and involvement with one’s organization. In each case we identify where gender and generational differences emerge. Our main objective is to determine whether Russian employees who exhibit an internal locus of control perform better than employees with an external locus of control. Our performance measures include earnings, expected promotions, and assessments of the quantity and quality of work in comparison to others at the same organization doing a similar job. Controlling for a variety of worker characteristics, we find that (1) individuals who exhibit an internal locus of control perform better, but this result is not always statistically significant; (2) even among “internals,” women earn significantly less than men and have a much lower expectation of promotion; (3) even among “internals,” experience with unemployment has a negative influence on performance.locus of control, Russia, motivation, performance, gender

Perceptions and Behavior: Analyzing Wage Arrears in Russia

We investigate the link between perceptions and behavior using the wage arrears phenomenon in Russia as our case study. To measure perception, we utilize assessments of ‘marketability’ -- what we call perceived demand. For behavior, we first consider the behavior of managers in the allocation of wage arrears, and second, the response by workers to wage arrears. Using Russian Longitudinal Monitoring Survey data collected between 1994 and 2004 and controlling for regional macroeconomic conditions, firm characteristics and worker characteristics in the probit and Poisson regressions, we find that managers avoid allocating wage arrears to workers with high perceived demand. We argue that this happens because workers with high perceived demand tend to have more employment options and consequently are more likely to quit their jobs. Managers try to retain these workers by reducing their wage arrears. Our empirical results support this argument, as we find that job change is reduced by lowering arrears.http://deepblue.lib.umich.edu/bitstream/2027.42/57249/1/wp869 .pd

Opportunities and benefits of local content requirement policy: case of Eastern Siberian oil and gas industry

This paper explores the regional economic impact of mineral resource endowment and offers specific inputs to the debate on the local content requirement (LCR) policy, gaining urgency in modern economic and political environment. Focusing on the experience of the Eastern Siberia the paper examines the way national companies operate in the newly developing oil and gas provinces of Russia. The analysis of key economic indices shows that the existing approach based on rent-seeking strategy doesn?t allow having any significant benefits from resource endowment in the regions. The key idea is that the establishment of completely new industry has to affect regional economic development, budget revenues dynamics, and employment, to influence the related industries and services in the region. Such benefits are of great importance especially for the Eastern Siberian regions which had been endured the alarming depopulation and deindustrialization processes since the collapse of Soviet Union in 1991. Oil and gas production is capital intensive industry, but at the same time involves quite limited number of employees. Equipment and machinery producing industries, as well as oil and gas related services and engineering, on the contrary can be referred to the highly skilled and labor intensive sectors. Moreover linkages between oil and gas industry and other local industries can impact regional economic growth through investments and creating value added activities in equipment and materials. Nowadays Russian national oil and gas companies don?t have a clear local content strategy, it?s mainly addressed as part of the ?corporate social responsibility agenda?. The paper provides the review of the LCR policy which has been widely used in some countries with similar industry pattern like Norway, Brazil and Malaysia. The conducted analysis let to form possible scenarios and evaluate the dynamics of regional economic development depending on the scale of LCR policy. The developed approach based on statistical modeling allows assessing both direct and indirect (via intersectoral relations) effects of LCR policy. The obtained results allow to conclude that the implementation of LCR policy lead to the growth of real income per capita and the job creation in the region which give the opportunity to reverse the population decrease trend. The development of equipment and services suppliers for oil and gas industry by ripple effects can boost socio-economic development and diversify regional economics. The paper also dwells on some pitfalls and risks accompanying LCR policy and considers crucial points of introducing this kind of policy for local and federal government

Perceptions and Behavior: Analyzing Wage Arrears in Russia

We investigate the link between perceptions and behavior using the wage arrears phenomenon in Russia as our case study. To measure perception, we utilize assessments of ‘marketability’ – what we call perceived demand. For behavior, we first consider the behavior of managers in the allocation of wage arrears, and second, the response by workers to wage arrears. Using Russian Longitudinal Monitoring Survey data collected between 1994 and 2004 and controlling for regional macroeconomic conditions, firm characteristics and worker characteristics in the probit and Poisson regressions, we find that managers avoid allocating wage arrears to workers with high perceived demand. We argue that this happens because workers with high perceived demand tend to have more employment options and consequently are more likely to quit their jobs. Managers try to retain these workers by reducing their wage arrears. Our empirical results support this argument, as we find that job change is reduced by lowering arrears.perceived demand, wage arrears, perceptions, behavior, Russia

Indicators of economic and social effectivenes labour motivation

В статті досліджується сутність соціальної та економічної ефективності мотивації праці. Розроблено систему індикаторів ефективності мотивації праці. Наведено результати оцінювання ефективності мотивації праці в Україні в умовах формування конкурентного середовища. The essence of the human capital and economic effectiveness of labour motivation is studied. The system of indicators of the effectiveness of labour motivation are worked out. The results of evaluation of the effectiveness of labour motivation in Ukraine in the conditions of the formation of the competative environment are given

Competitiveness of the human capital in youth labour market

Запропоновано класифікацію чинників формування конкурентоспроможності людського капіталу. На основі результатів соціологічного дослідження виявлено причини, які заважають молоді реалізувати свої конкурентні переваги у сфері праці. Розроблено пропозиції щодо подолання перешкод у використанні людського капіталу на молодіжному ринку праці. The essence of the concepts «competitiveness of the human capital», «competitive advantages of youth in labor market» have been disclosed in the article. The classification of factors of formation of human capital competitiveness has been developed. The specific factors influencing realization of competitive advantages of youth in labor market have been defined. The interrelation of competitive advantages and human capital quality of youth has been revealed. The tendencies of economic activity and youth employment structure have been analyzed. The results of sociological research revealed the factors interfering realization of competitive advantages of youth in employment. The suggestions concerning overcoming of obstacles in realization of the human capital in youth labor market have been developed