Browsing by Author "Lazareva, Olga"

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  • Haaparanta, Pertti; Juurikkala, Tuuli; Lazareva, Olga; Pirttilä, Jukka; Solanko, Laura; Zhuravskaya, Ekaterina (2003)
    BOFIT Discussion Papers 16/2003
    This paper reports first results from a survey of 404 middle-sized and large manufacturing firms from 40 Russian regions in April-June 2003.We examine the extent of social service and infrastructure provision by the firms and the firms assessment of the quality of public infrastructure and the regulatory environment.Background information of ownership, investment, performance, competition, and finance decisions of the firms is also gathered. The data reveal that despite major divestments of social services during 1990s, a great majority of firms still provide at least some form of social services.For example, 56% of the firms have their own housing or support local housing, and 73% of the firms have recreation facilities or support employee s recreation activities. While managers view the social service provision as non-essential and costly, many of the firms continue to provide these services, even to users other than their own workforce. The quality of public infrastructure is generally assessed as being good or satisfactory; the respondents were the least satisfied with the quality of roads.Over a half of the firms provide their own heat, but mainly due to technological reasons although public service interruptions do occur and 24% of the firms give support to the maintenance and construction of public road network. The regulatory burden the firms face continues to be severe.In more than half of the firms, for example, the general manager has to spend more than two weeks in negotiations about public infrastructure with the authorities. These descriptive results indicate that there is still a lot scope for improvement in the quality and quantity of public service provision in Russia.Enterprises are still engaged rather heavily in social service provision, road network would require improvements, and the easing of regulatory burden should continue. Addressing these questions is likely to be vital for the sustainability of investments and growth in Russia. The paper is part of the project Infrastructure and Welfare Services in Russia: Enterprises as Beneficiaries and Service Providers financed by the Academy of Finland (project number 200936), the World Bank, and Yrjö Jahnsson Foundation.The project has also received support from the Bank of Finland Institute for Economies in Transition.
  • Juurikkala, Tuuli; Lazareva, Olga (2006)
    BOFIT Discussion Papers 1/2006
    In the planned economy firms were made responsible for providing their workers with social services, such as housing, day care and medical care.In the transforming Russia of the 1990s, social assets were to be transferred from industrial enterprises to the public sector.The law on divestment provided little more than general principles.Thus, for a period of several years, property rights concerning a major part of social assets, most notably housing, were not properly defined, as transfer decisions were largely left to the local level players.Strikingly, the time when assets were divested varied considerably across firms.In this paper we utilize recent survey data from 404 medium and large industrial enterprises in 40 Russian regions and apply survival data analysis to explore the determinants of divestiture timing. Our results show that in municipalities with higher shares of own revenues in their budget and thus weaker fiscal incentives, firms used their social assets as leverage to extract budget assistance and other forms of preferential treatment from local authorities. We also find evidence that less competitive firms were using social assets to cushion themselves from product market competition.At the same time, we do not find any role for local labor market conditions in the divestment process.
  • Juurikkala, Tuuli; Lazareva, Olga (2006)
    BOFIT Discussion Papers 4/2006
    Published in Economics of Transition, Volume 20, Issue 1, pages 113-136, January 2012 as "Non-wage benefits, costs of turnover and labour attachment. Evidence from Russian firms"
    Just as in established market economies, many Russian firms provide non-wage benefits such as housing, medical care or day care to their employees.Interpreting this as a strategic choice of firms in an imperfect labor market, this paper examines unique survey data for 404 large and medium-size industrial establishments from 40 Russian regions.We find strong evidence that Russian industrial firms use social services to reduce the costs of labor turnover in the face of tight labor markets.The strongest effect is observed for blue-collar workers.We also find that the share of non-monetary compensation decreases with improved access to local social services. Keywords: Non-wage benefits, labor turnover, labor attachment, Russia JEL codes: J32, J33, J42, J63, M52, P31