Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain

41 Pages Posted: 29 Mar 2000

See all articles by Hartmut Lehmann

Hartmut Lehmann

University of Bologna - School of Economics, Management, and Statistics; IZA Institute of Labor Economics

Jonathan Wadsworth

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); IZA Institute of Labor Economics; William Davidson Institute; Royal Holloway College University of London

Date Written: December 1999

Abstract

We study worker turnover in a transition economy to investigate to what extent the length of time a worker has been employed by a firm shapes the turnover process. Using data from the Polish Labor Force Survey and The Russian Longitudinal Monitor Survey, we compare the pattern of turnover with a Western economy, Britain. We show tenure profiles are higher and flatter in Russia and steeper and lower in Poland than in Britain. The characteristics of workers hired in the state and private sectors do not look very different. State and private sector firms in Poland offer the same wages to new recruits, but new private sector jobs in Russia appear to offer wage premia relative to new state jobs. We argue that these observations are consistent with a framework where the value of seniority in jobs begun under the old order may be small and the value of a continued job match unsure, offset, in Poland at least, by insider resistance to layoffs.

JEL Classification: J6

Suggested Citation

Lehmann, Hartmut F. and Wadsworth, Jonathan, Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain (December 1999). IZA Discussion Paper No. 90. Available at SSRN: https://ssrn.com/abstract=219873

Hartmut F. Lehmann (Contact Author)

University of Bologna - School of Economics, Management, and Statistics ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Jonathan Wadsworth

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
England

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

William Davidson Institute

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Ann Arbor, MI 48109-1234
United States

Royal Holloway College University of London

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London, TW20 0EX
United Kingdom

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