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The Relationship between Employer-provided Health Insurance and Employee Retention in Russia

Student: Abduramanov Artyom

Supervisor: Natalia Volkova

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Management (Bachelor)

Year of Graduation: 2020

In the contemporary labour market, it is extremely important for managers to overcome the difficulties that come from hiring and retaining employees in the organisation. The cost of turnover is costly to most organisations. Thus, the efficient ways of employee retention are always being observed by managers in companies. The concept of job-lock explains the dependency of an employee on a company-provided benefit that is non-portable to another workplace. In this sense, corporate health insurance has played a vital role. However, in the context of Russia, the effect is hardly documented. The main objective of the current research is to investigate whether employer-provided health insurance (EPHI) has a direct relationship with the employee retention in the organisation. With the help of logistic regression with fixed effects over the panel data (2004-2017), which is provided by Russian Longitudinal Monitoring Survey (RLMS), it has been determined that there is a weak influence of EPHI on workers’ probability of staying in a company over the sample by having a stronger effect among female individuals and those who are older ones.

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