nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2010‒02‒27
four papers chosen by
Anna Y. Borodina
Perm State University

  1. The Evolution of Labor Relations inside a Russian Firm during Late Transition: Evidence from Personnel Data By Hartmut Lehmann
  2. The British Russian Option By Kristoffer Glover; Goran Peskir; Farman Samee
  3. Standard and Non-standard Employment in Russia: How Large is the Wage Gap? By Tatiana Karabchuk
  4. Accessibility of Professional Education in Russia By Yana Roshchina

  1. By: Hartmut Lehmann
    Abstract: This paper surveys three studies on the internal labor market of one Russian firm spanning the years 1997 to 2002 and focusing on three different issues. The studies use unique personnel data that were collected by us and that include the work history of each employee as well as annual averages of monthly wages and total compensation. Since the three studies are part of a larger project on internal labor markets in Russia and Ukraine during transition, the paper starts off with a general assessment of how the analysis of personnel data from transition countries can contribute to the general literature on internal labor markets. After short descriptions of the investigated firm and the personnel data at our disposal, the motivation and the pertinent results of the three studies are presented. While the first study looks at the question how the costs of a financial crisis are spread over the workforce and whether incumbent employees are sheltered from negative shocks in the economy, the second study is tied to the discussion of wage determination in Russia and analyzes the narrower question whether local labor market conditions are an important factor in the wage determination process of the firm at hand or whether stable internal labor market structures are of primary concern for its human resource managers. The third study contributes to the literature on the labor market experience of women in transition by analyzing the evolution and the determinants of the gender earnings gap in the firm.
    Date: 2010
  2. By: Kristoffer Glover (School of Finance and Economics, University of Technology, Sydney); Goran Peskir; Farman Samee
    Abstract: Following the economic rationale of [10] and [11] we present a new class of lookback options (by ?rst studying the canonical ?Russian? variant) where the holder enjoys the early exercise feature of American options where upon his payoff (deliverable immediately) is the ?best prediction? of the European payoff under the hypothesis that the true drift of the stock price equals a contract drift. Inherent in this is a protection feature which is key to the British Russian option. Should the option holder believe the true drift of the stock price to be unfavourable (based upon the observed price movements) he can substitute the true drift with the contract drift and minimise his losses. The practical implications of this protection feature are most remarkable as not only is the option holder afforded a unique protection against unfavourable stock price movements (covering thea bility to sell in a liquid market completely endogenously) but also when the stock price movements are favourable he will generally receive high returns. We derive a closed form expression for the arbitrage-free price in terms of the rational exercise boundary and show that the rational exercise boundary itself can be characterised as the unique solution to a nonlinear integral equation. Using these results we perform a ?nancial analysis of the British Russian option that leads to the conclusions above and shows that with the contract drift properly selected the British Russian option becomes a very attractive alternative to the classic European/American Russian option.
    Date: 2010–01–01
  3. By: Tatiana Karabchuk
    Abstract: The paper examines incidence and earnings of non-standard workers in Russia. We focus on two main types of non-standard arrangements: non-permanent and part-time employment. First we identify determinants of incidence of these types of non-standard employment and find out that such personal characteristics as education level, age and marital status have strong impact on it. Secondly we explore wage differentials between permanent and non-permanent and full-time and part-time employees and demonstrate that the observed wage gap went down substantially when we apply advanced econometric techniques and control for various other factors. The analysis was done with the help of large-scale representative data set Household Survey of Welfare, conducted by Rosstat and World Bank in 2003.
    Date: 2010
  4. By: Yana Roshchina
    Abstract: In this paper, on the basis of data of RLMS and of Monitoring of economics of education, it is shown that factors of the family capital (first of all, incomes and the educational level of parents) represent an essential obstacle for educational options for Russian high schools graduates. The inequity in accessing professional education was strong in 1961-1990 as well as in 1991-2000. Some of the factors disappeared (parents' membership in the Communist Party, respondent's age), some became less influential (village as the birthplace). However, the importance of some parameters such as parents' human capital, increased. The existing social inequality of pupils' families becomes fixed and aggravated at high school level as children of poorer and less educated parents study at the worst schools and have lower progress. Therefore, the considerable inequality of educational intentions between pupils of 8- 9 classes exists: children from families with higher social positions are going to receive full secondary education and will most likely be enrolled to the university courses while children from families with low level of the family capital are going to have only primary or secondary professional education. Subsequently, this self-restriction of intentions results in the social differentiation of students in three levels of professional education (primary, secondary and higher): university's students once studied at better schools and their parents have higher social positions.
    Date: 2010

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