We analyze a model of wage delay in which strategic complementarity arises because each employer’s costs of violating 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...

We investigate the link between perceptions and behavior using the wage arrears phenomenon in Russia as our case study. To measure perception, we utilize assessments of 'marketability' - what we call perceived demand. For behavior, we first consider the behavior of managers in the allocation of...