Does Fear See Danger Everywhere? Fear of
Unemployment and Wages Flexibility in Russia (by
Vladimir Gimpelson, Rostislav Kapelyushnikov,
Tatyana Ratnikova). This paper examines the connection
between people's notions of economical
situation and their economic behavior. This issue is
considered on the example of forming up the notions
of unemployment and their influence on workers
adaptation in the labor market.
Using the data of RMEE for 1994-2000 years the
authors show that at the beginning of this period the
fear of unemployment was forming up exogenously
in relation to the real situation in the labor market.
Along with actual unemployment it was a meaningful
factor of lowering pressure on real wages. With
the reforms development social learning of population decreased the importance of
fear as an autonomous
of unemployment adaptation mechanism in
the labor market. The main conclusions of the paper
are confirmed by econometric calculations using
both MNK-estimations for cross-sectional data for
particular years and estimations of panel regressions
with individual effects.