Well-being and wage arrears in Russian panel data

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Clark, Andrew E.; & Maurel, Mathilde. (2001). Well-being and wage arrears in Russian panel data. HSE Economic Journal, 5(2), 179–194.

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Abstract:

This paper attempts to estimate the impact of wage arrears on subjective well being, as measured by the RLMS (Russian Longitudinal Monitoring Survey). This latter is a comprehensive survey, conducted from 1992 up to 1998, on a representative sample of Russian households and individuals. The results are unambiguous: working with wage a r - rears implies a clear fall in satisfaction. We are able to calculate the shadow price of wage arrears, that is the increase in wages which would place an individual with wage arrears on the same indifference curve as an individual without such arrears. Another result, on the face of it more puzzling, is that the level of satisfaction provided by a job with ar- rears is lower than that provided by inactivity (although higher than that provided by unemployment). We suggest some explanations which we will test in further work. Sub-regressions show that the psychologi- cal impact of wage arrears is greater for men and less well-educated workers, and smaller for women and better-educated workers.

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JOUR

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Author(s):
Clark, Andrew E.
Maurel, Mathilde

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2001

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HSE Economic Journal

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5

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2

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179–194

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Reference ID:
874

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