The Russian Labor Market in Transition : Time to Work or Time to Take a Rest?

This paper studies the effect of labor market shocks on the allocation of non-market time in transitional Russia. The model of a two-sector labor market with restricted hours of work in the state sector of employment and high fixed costs of entry in the private sector implies that earnings are a better approximation of worker's well-being than wages. Cross-sectional and panel data analysis shows the population enjoyed more leisure during transition than before and movement to and from employment took place mostly at the expense of leisure hours. In response to higher earning opportunities employed men reduced leisure while employed women also cut down on childcare and housework