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1. Whole Sample

2. Nonseparated Only

Left-HandVariable

Inside Intensity

Outside Intensity

Inside Intensity

Outside Intensity

Number who work

n.u.

0.078

n.u.

0.06

 

(0.064)

 

(0.046)

Inside intensity

n.u.

-0.019

n.u.

-0.06

 

(0.029)

 

(0.06)

Observations

1,571

1,571

1,191

1,191

NOTES: Standard errors are in parentheses. Coefficients significant at the 5 percent level are indicated with an asterisk (*). "n.u." denotes that this variable was not used.

measures of individual attributes and firm-level performance that were already on the right-hand side of the regressions.13 In the regression for the whole sample, outside intensity is significant when put on the right-hand side. This result is obviously influenced by the presence of both the unemployed (with zero inside intensity and varying outside intensity) and the separated and reemployed (with zero inside intensity and outside intensity assumed at the maximum level.) We therefore ran the regression only for people who had not separated.

Both inside and outside intensity are now not significant, but this is not necessarily cause for rejecting our first hypothesis. Given the evidence from the cross-tabulations in Table 7-1, the most reasonable interpretation is that use of outside survival strategies is uniformly high and not affected by the inside intensity of work. This is further evidence of a severe crisis for state-sector employees.

Relevant for the second hypothesis, we find both the female dummy and the dummy for a person being of pensionable age to be significantly negative, indicating that these people work less both inside and outside the firm. Years of tenure (i.e., years of employment in that firm) are positive and significant in both regressions. The dummies for education are not significant, and the only significant age dummy is for those aged 26-35 (negative in the inside intensity regression). Thus it seems that women and pensioners work relatively less inside and do not make this up with more work outside the firm.14

13  

As right-hand-side variables we used the net employment reduction for each firm in 1992, 1993, and 1994 up to the date of interview. We also used the number of children, adults, pensioners, and students in the family, as well as the total number of people working in the family in the outside intensity regression. For the inside intensity regression, we used dummies for more than two nonworking dependents in the family and for whether no one else in the family was working. By law, state enterprises are supposed to take these two variables into account when deciding whom to fire. Alternative specifications of our regressions did not affect the significance and order of magnitude of the estimates.

14  

On average, women worked 32.5 hours and pensioners 31.7 hours inside the firm, compared with 36.3 hours for men.



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