This study attempts to explain why the transition to a market economy is skill-biased. It shows unequivocal evidence on … market adjustment hypothesis, and the institutional factor hypothesis. To test these hypotheses, the study uses unique linked … employer-employee data that spans the 16 years of the Soviet and transition periods in Russia (1985-2000), with a special …

. While Russia is undergoing transition to a market economy, we find ample evidence that compensating differentials for … sufficient market equilibrium exists and a model of compensating differentials with controls for disequilibrium yields useful …

Using micro-level data, we examine the effects of Russia's 2001 flat rate income tax reform on consumption, income, and …

its contracts decrease with the arrears in its labor market. The model is estimated on panel data for workers and firms in … Russia, facilitating identification through fixed effects for employees, employers, and local labor markets, and instrumental … payment equilibrium. The estimates imply that the theoretical conditions for multiple equilibria under symmetric labor market …

's arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic … complementarity in the practice. The model is estimated on panel data for workers and firms in Russia, facilitating identification … market. We also exploit a policy intervention affecting public sector workers that provides an instrumental variable to …

the same labor market, resulting in a network externality or strategic complementarity in the adoption of the practice. We … payment equilibrium." Our econometric analysis of linked employer-employee data for Russia supports the model's contention … legal penalties - are attenuated by arrears in the local labor market. We estimate the arrears reaction function implied by …