nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2012‒04‒03
two papers chosen by
Koen Schoors
Ghent University

  1. Explaining the Dynamics in Perceptions of Job Insecurity in Russia By Lokshin, Michael; Gimpelson, Vladimir; Oshchepkov, Aleksey
  2. Subnational Taxation in Large Emerging Countries: BRIC Plus One By Richard M. Bird

  1. By: Lokshin, Michael (World Bank); Gimpelson, Vladimir (CLMS, Moscow Higher School of Economics); Oshchepkov, Aleksey (Higher School of Economics, Moscow)
    Abstract: Contrary to the experiences of other countries, perceptions of job insecurity in Russia were not correlated with the rates of unemployment and the business cycle over the last decade. We develop the theoretical framework that predicts that the individual perceptions of job insecurity depend on regional unemployment rates and on the within-group variance of wage distribution faced by workers. We test this hypothesis using data from ten panel rounds of Russia Longitudinal Monitoring Survey. Our results indicate that while higher rates of unemployment make workers feel less job secure, the wage compression during recessions reduces their fears of losing a job. In periods of economic expansion the effect of lower unemployment rates is offset by the higher fears of losing better paying jobs.
    Keywords: unemployment, job security, business cycle, Russia
    JEL: J28 J30 J64
    Date: 2012–03
  2. By: Richard M. Bird (University of Toronto)
    Abstract: This paper reviews the evolution and current state of subnational taxation in five large emerging countries: Brazil, Russia, India, China, and Nigeria – BRIC plus one. As these case studies show, intergovernmental fiscal relations in any country are inevitably both path-dependent and context-sensitive. In India and Brazil, for example, subnational governments already have a significant degree of fiscal autonomy in terms of being able to set some key tax rates. In both countries, however, substantial attention still must be paid to improving the general consumption taxes that are the main source of regional government revenues as well as the property taxes on which local governments mainly depend. Although Nigeria, like India and Brazil, is a federation, its fiscal system depends so heavily on oil revenues that almost all political attention has been focused on securing a bigger share of these revenues. Both China and Russia have made a number of important changes in the direction of centralizing rather than decentralizing effective control over subnational taxes. In both countries the key issue is the extent to which fiscal decentralization is to be accompanied by any significant political decentralization. At the present time, in neither China nor Russia is it clear that the central authorities are willing to permit subnational governments much autonomy in this respect.
    Keywords: state and local taxation, intergovernmental fiscal relations, Brazil, Russia, India, China, Nigeria
    Date: 2012–01–13

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