BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 4/2006:
Non-wage benefits, costs of turnover, and labor attachment: Evidence from Russian firms
Tuuli Juurikkala ()
and Olga Lazareva ()
Abstract: 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; (follow links to similar papers)
JEL-Codes: J32; J33; J42; J63; M52; P31; (follow links to similar papers)
31 pages, April 13, 2006
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