The authors argue that the pattern of social policy in developing countries is determined by two key factors: the domestic political influence of formal sector workers (who provide the most substantial roadblock to reform), and the absolute income level (gross domestic product per capita) of the...

We organize an empirical analysis of Russian wage arrears around hypotheses concerning factors that create incentives for firms to pay late and for workers to tolerate late payment, both reinforced by a prevalent environment of overdue wages. Our analysis draws upon nationally representative...