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Human capital externalities Evidence from the transition economy of Russia1

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  • Alexander Muravyev

Abstract

The paper tests for the existence of human capital externalities using a micro‐level approach: the Mincerian wage regression augmented with the average level of education in cities. To solve identification problems arising from the endogeneity of average education, the study exploits a natural experiment provided by the process of economic transition: average education at the end of communism can be seen as exogenous in respect of wages prevailing after the start of transition. Our empirical results based on the RLMS data show that a 1 percentage point increase in the share of city residents with a university degree results in an increase of wages of city residents by about 1 percent.

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  • Alexander Muravyev, 2008. "Human capital externalities Evidence from the transition economy of Russia1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 415-443, July.
    • Handle: RePEc:bla:etrans:v:16:y:2008:i:3:p:415-443
    DOI: 10.1111/j.1468-0351.2008.00330.x
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    References listed on IDEAS

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    1. Granick,David, 1987. "Job Rights in the Soviet Union," Cambridge Books, Cambridge University Press, number 9780521332958.
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    Cited by:

    1. Hartmut Lehmann & Alexander Muravyev & Klaus Zimmermann, 2012. "The Ukrainian longitudinal monitoring survey: towards a better understanding of labor markets in transition," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    2. Lehmann, Hartmut & Muravyev, Alexander, 2009. "How Important Are Labor Market Institutions for Labor Market Performance in Transition Countries?," IZA Discussion Papers 4673, Institute of Labor Economics (IZA).
    3. H. Lehmann & A. Muravyev, 2010. "Labor market institutions and labor market performance: what can we learn from transition countries?," Working Papers 714, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Lehmann, Hartmut & Wadsworth, Jonathan, 2011. "The impact of Chernobyl on health and labour market performance," Journal of Health Economics, Elsevier, vol. 30(5), pages 843-857.
    5. Muravyev, Alexander & Oshchepkov, Aleksey, 2013. "Minimum Wages, Unemployment and Informality: Evidence from Panel Data on Russian Regions," IZA Discussion Papers 7878, Institute of Labor Economics (IZA).
    6. repec:zbw:rwirep:0195 is not listed on IDEAS
    7. Alexander Muravyev & Aleksey Oshchepkov, 2016. "The effect of doubling the minimum wage on employment: evidence from Russia," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    8. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Publications - Reports 13052, The World Bank Group.
    9. Thomas K. Bauer & Matthias Vorell, 2010. "External Eff ects of Education: Human Capital Spillovers in Regions and Firms," Ruhr Economic Papers 0195, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    10. Karen Macours & Johan Swinnen, 2006. "Rural Poverty in Transition Countries," LICOS Discussion Papers 16906, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    11. Bratti, Massimiliano & Leombruni, Roberto, 2009. "Local Human Capital Externalities and Wages at the Firm Level: The Case of Italian Manufacturing," IZA Discussion Papers 4613, Institute of Labor Economics (IZA).
    12. Seung Mo Choi, 2008. "How Large are Learning Externalities? Measurement by Calibration," Working Papers 2008-26, School of Economic Sciences, Washington State University.
    13. Macours, Karen & Swinnen, Johan F.M., 2008. "Rural-Urban Poverty Differences in Transition Countries," World Development, Elsevier, vol. 36(11), pages 2170-2187, November.
    14. Bauer, Thomas K. & Vorell, Matthias, 2010. "External Effects of Education: Human Capital Spillovers in Regions and Firms," Ruhr Economic Papers 195, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Filiztekin, Alpay, 2011. "Social returns to education in a developing country," MPRA Paper 35124, University Library of Munich, Germany.

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