Wage Uncertainty and Intra-Household Labor Allocation: Evidence from an Emerging Economy
Keywords:
Wage Uncertainty, Intra-Household Labor Allocation, Labor Supply, Regional Economic Disparities, Household Economic ResilienceAbstract
Wage uncertainty represents an important source of economic insecurity, potentially influencing household employment decisions, income stability, and labor allocation. In this study, the authors analyzed the regional economic situation related to wage insecurity and allocation of labor resources within the family in Russia over the period 2000-2019. Secondary economic data such as regional consumer price indices, gross regional product per capita, minimum wage indicators and annual working days were used in this quantitative descriptive approach. Regional economic disparities, fluctuations in inflation, and the working calendar changes were analyzed with descriptive statistics and comparative trend analysis. The results showed that in 2019, there were significant disparities in the nominal economic output per capita between the Russian federal districts, with the Ural Federal District having the largest GEP per capita. Inflation across the region has dropped from 20.36% in 2000 to 3.05% in 2019 but with occasional spikes, suggesting the presence of economic instability. The number of working days per year was fairly constant during the period observed. These results identified the regional variations of the economic situation that could affect the ability of the household to spend and also their employment. However, the wage uncertainty effects could not be estimated directly due to the lack of wage history data and data on household labour supply. More research is needed that combines longitudinal information on the household to examine the ability of households to adjust their labor supply and their economic resilience.
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