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dc.contributor.authorPeter, Klara Sabirianovaen_US
dc.contributor.authorEarle, John S.en_US
dc.date.accessioned2009-01-28T16:14:09Z-
dc.date.available2009-01-28T16:14:09Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/20444-
dc.description.abstractWe present a model of neighborhood effects in wage payment delays. Positive feedback arises because each employer?s arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic complementarity in the practice. The model is estimated on panel data for workers and firms in Russia, facilitating identification through the use of a rich set of covariates and fixed effects at the level of the employee, the employer, and the local labor market. We also exploit a policy intervention affecting public sector workers that provides an instrumental variable to estimate the endogenous reaction in the non-public sector. Consistently across specifications, the estimated reaction function displays strongly positive neighborhood effects, and the estimates of four feedback loops – operating through worker quits, effort, strikes, and legal penalties – imply that costs of delays are attenuated by neighborhood arrears. We also study a nonlinear case exhibiting two stable equilibria: a ?punctual payment equilibrium? and a ?late payment equilibrium.? The estimates imply that the theoretical conditions for multiple equilibria under symmetric local labor market competition are satisfied in our data.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 1198en_US
dc.subject.jelA12en_US
dc.subject.jelB52en_US
dc.subject.jelP37en_US
dc.subject.jelJ30en_US
dc.subject.jelO17en_US
dc.subject.jelP31en_US
dc.subject.jelK42en_US
dc.subject.jelL14en_US
dc.subject.ddc330en_US
dc.subject.keywordwage arrearsen_US
dc.subject.keywordcontract violationen_US
dc.subject.keywordneighborhood effecten_US
dc.subject.keywordsocial interactionsen_US
dc.subject.keywordmultiple equilibriaen_US
dc.subject.keywordnetwork externalityen_US
dc.subject.keywordstrategic complementarityen_US
dc.subject.stwLohnen_US
dc.subject.stwVerbindlichkeitenen_US
dc.subject.stwVergütungssystemen_US
dc.subject.stwNachbarschaftsökonomieen_US
dc.subject.stwÜbergangswirtschaften_US
dc.subject.stwSpieltheorieen_US
dc.subject.stwSchätzungen_US
dc.subject.stwRusslanden_US
dc.subject.stwLohnrückständeen_US
dc.titleContract Violations, Neighborhood Effects, and Wage Arrears in Russiaen_US
dc.typeWorking Paperen_US
dc.identifier.ppn390563285en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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