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Community Norms and Organizational Practices: The Legitimization of Wage Arrears in Russia, 1992-1999

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dc.creator Earle, John S.
dc.creator Spicer, Andrew
dc.creator Peter, Klara Sabirianova
dc.date 2004
dc.date.accessioned 2013-10-16T07:09:28Z
dc.date.available 2013-10-16T07:09:28Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20241
dc.identifier ppn:37873248X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20241
dc.description What role do community norms play in the diffusion and persistence of new organizational practices? We explore this question through an examination of the widespread practice of wage arrears, the late and non-payment of wages, in Russia during the 1990s. Existing research on wage arrears most often examines this practice as a means of flexible wage adjustment under difficult economic conditions. We develop an alternative theory that explains wage arrears through their acceptance as a legitimate form of organizational behavior within local communities. Our empirical analysis finds some support for the neoclassical position that wage arrears reflect adjustment to negative shocks, but this perspective fails to account for a number of important facts, including a high level of arrears among apparently successful firms. In contrast, our results find strong support for the institutional perspective. The statistical analysis demonstrates powerful and robust community effects both in firm adoption of this practice, controlling for firm performance, liquidity, and fixed firm effects, and in workers? reaction to arrears, through their quit (exit) and strike (voice) behavior.
dc.language eng
dc.relation IZA Discussion paper series 1006
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject P31
dc.subject O17
dc.subject J30
dc.subject P37
dc.subject L14
dc.subject A12
dc.subject B52
dc.subject A14
dc.subject ddc:330
dc.subject institutions
dc.subject norms
dc.subject legitimacy
dc.subject arrears
dc.subject organizational practices
dc.subject sociology
dc.subject Russia
dc.subject Lohn
dc.subject Verbindlichkeiten
dc.subject Lohnflexibilisierung
dc.subject Unternehmenskultur
dc.subject Institutionalismus
dc.subject Soziale Werte
dc.subject Schätzung
dc.subject Russland
dc.subject Lohnrückstände
dc.title Community Norms and Organizational Practices: The Legitimization of Wage Arrears in Russia, 1992-1999
dc.type doc-type:workingPaper

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