Health Effects of Occupational Change

Rapidly changing technologies and the growing openness of economies to international trade sometimes make entire occupations in the countries affected redundant. People employed in these occupations have to switch to other occupations that they do not necessarily like. Such “forced” occupational change causes stress, which can be harmful to their health. The effect of people losing their profession on their health has not been previously studied. This paper is intended to fill the gap. I study the effect of occupational change on health and health-related behavior using data from Russia’s economic transition, which was characterized by massive occupational mobility. The results show that “forced” occupational change has a significant negative effect on individual health; it also increases smoking and alcohol consumption. These results survive a number of robustness checks.occupational change, health, smoking, alcohol

To Divest or not to Divest? Social Assets in Russian Firms

In the planned economy firms were made responsible for providing their workers with social services, such as housing, day care and medical care. In the transforming Russia of the 1990s, social assets were to be transferred from industrial enterprises to the public sector. A law on divestment was put into force but it provided mostly general principles. Thus, for a period of several years, property rights over a major part of social assets, most notably housing, were not properly defined as the transfer decisions were largely left for the local level players to make. Strikingly, the time when assets were divested varied considerably across firms. In this paper we take a political economy approach and utilize recent survey data from 404 medium and large industrial enterprises in 40 Russian regions to study the effects different forms of bargaining between the firm and the municipality may have on the timing decisions. In particular, we apply survival data analysis to explore the determinants of the divestiture timing. Our results show that the firms which divested assets later receive more benefits from the local authorities, especially in places where there are more benefits to extract (i.e. the local budget is richer). Further, we find evidence that the firms which transferred assets later performed relatively worse in 2002 in terms of profitability, productivity and investments. Finally, the data shows that poorly defined property rights have an adverse effect on the incentives to invest in social assets, and hence on the quality of public service provision.

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

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.non-wage benefits; labor turnover; labor attachment; Russia

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

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.Non-wage benefits, labor turnover, labor attachment, Russia

Lobbying at the local level: Social assets in Russian firms

IIn the planned economy firms were made responsible for providing their workers with so-cial services, such as housing, day care and medical care. In the transforming Russia of the 1990s, social assets were to be transferred from industrial enterprises to the public sector. The law on divestment provided little more than general principles. Thus, for a period of several years, property rights concerning a major part of social assets, most notably hous-ing, were not properly defined, as transfer decisions were largely left to the local level players. Strikingly, the time when assets were divested varied considerably across firms. In this paper we utilize recent survey data from 404 medium and large industrial enterprises in 40 Russian regions and apply survival data analysis to explore the determinants of dives-titure timing. Our results show that in municipalities with higher shares of own revenues in their budget and thus weaker fiscal incentives, firms used their social assets as leverage to extract budget assistance and other forms of preferential treatment from local authorities. We also find evidence that less competitive firms were using social assets to cushion them-selves from product market competition. At the same time, we do not find any role for lo-cal labor market conditions in the divestment process.housing divestment; lobbying; firms; muncipalities; Russia

Russian Migrants to Russia: Choice of Location and Labor Market Outcomes

The move of five million Russian and Russian-speaking people from the former Soviet Union countries to Russia which took place during 1990s has been studied by demographers, sociologists and to a lesser extent by economists. This paper presents a study of the labor market outcomes for the Russian migrants to Russia, using the data from a representative survey of the Russian population in 2004 and 2005. Author focuses on the location choice by Russian immigrants and tests the hypothesis of skill sorting across regions. It is shown that in the regions with low fraction of immigrant population immigrants are doing better in terms of employment opportunities than local population while in the regions with high fraction of immigrants they are doing worse than locals. This result is consistent with the hypothesis that immigrants choose regions where the demand for their skills is high and compete for the jobs with fellow immigrants rather than with locals. Wage premiums for the migrants are found in some occupations but not in others. The results of the analysis indicate that the Russian migration to Russia has played some equilibrating role in the regional labor markets in presence of high barriers for internal labor migration.migration, regional labor markets, wages, employment