Secondary Employment in Russia Labor Supply Modeling

Abstract

This paper employs the RLMS (Russian Longitudinal Monitoring Survey) empirical data base to estimate the function of labor supply in the form of secondary employment. Several hypotheses are tested — the effect of individual and household income on secondary employment decisions, the dependence of first job parameters on second job characteristics, and the different motives of secondary employment (the heterogeneity of jobs, limitations of time spent on the first job, labor mobility). Our research results support the conclusion that there are two different types of secondary employment (one in the form of a permanent job and another in the form of additional earnings ("prirabotki")), and that secondary employment depends on wage arrears and to some extent on labor mobility. The analysis of secondary employment motives showed that the heterogeneity of job positions is the main reason individuals seek secondary employment in the form of a permanent second job, while time limits on the first job are the dominating reason for seeking additional earnings.Russia, labor supply, secondary employment, mobility, additional earnings, permanent second job