Non-wage benefits, costs turnover, and labor attachment : evidence from Russian firms
Juurikkala, Tuuli; Lazareva, Olga (15.05.2006)
JulkaisusarjaBOFIT Discussion Papers
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408072135
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. Keywords: Non-wage benefits, labor turnover, labor attachment, Russia JEL codes: J32, J33, J42, J63, M52, P31
Published in Economics of Transition, Volume 20, Issue 1, pages 113-136, January 2012 as "Non-wage benefits, costs of turnover and labour attachment. Evidence from Russian firms" and CEFIR . Working paper 62/2006.