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DARP Paper
Who Bore the Burden of Wage Arrears in the Kyrgyz Republic?
Ceema Zahra Namazie
November 2002
Paper No' DARP 064:
Full Paper (pdf)

Tags: transition; wage arrears; labour demand.

Despite large falls in output in the FSU, rather than firing workers, workers were subjected to long spells of unpaid leave or non-payment of wages (wage arrears). Wage arrears is a significant problem in the countries of the FSU, particularly in light of price liberalization on most goods and services as part of the transition away from a command economy. Here we examine if particular workers were more likely to experience non-payment of wages. As enterprises tried to reduce financial outlays it is not evident if more costly, skilled, labour would experience greater non-payment of wages, or whether cheaper, less skilled, labour would fare worse. Sectoral or regional differences could also be more important determinants. Recently available data household data for the Kyrgyz Republic is used to examine the incidence of wage arrears in 1993 and 1996.