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Structure and Distribution of Earnings in Russia, 1994–2003

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  • Anna LUKIYANOVA

    ()
    (State University-Higher School of Economics, Russia)

Abstract

The paper documents changes in the structure of earnings and earnings inequality in Russia for the period 1994–2003 using the RLMS data. The period covers few years of the transformational recession (1994–1998), the financial crisis in 1998 and the first years of economic recovery (2000–2003). A regression-based decomposition reveals that within-group inequality plays the largest, yet diminishing, role. Among the explanatory variables, the largest proportion of earnings dispersion (75%–80% of the explained level of inequality) is explained by the geographical variables and job characteristics. The decomposition results suggest that the rise in inequality after the financial crisis of 1998 is likely to be a result of the differences in the adjustment speeds across regions and industries. Employer ownership is only marginally important; however, its effect has been steadily increasing for women due to the increase in the public-private sector wage gap. Contrary to the initial expectations, the wage inequality in the public sector was different from that in the private sector: both were of a similar level and followed similar patterns of changes.

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File URL: http://www.kier.kyoto-u.ac.jp/~ces/jces/04_jces_2008/04_Lukyanova.pdf
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Bibliographic Info

Article provided by The Japanese Society for Comparative Economic Studies (JSCES) in its journal The Journal of Comparative Economic Studies.

Volume (Year): 4 (2008)
Issue (Month): (December)
Pages: 9-40

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Handle: RePEc:cos:epaper:v:4:y:2008:p:9-40

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Web page: http://www.kier.kyoto-u.ac.jp/~ces/
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Related research

Keywords: earnings inequality; wage determination; transition; Russia;

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  1. Lukiyanova Anna, 2003. "Transition to Postindustrial Society? A Study of the Service Sector Employment in Russia," EERC Working Paper Series 03-09e, EERC Research Network, Russia and CIS.
  2. John S. Earle & Klara Z. Sabirianova, 2002. "How Late to Pay? Understanding Wage Arrears in Russia," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 661-707, July.
  3. Philippe Aghion & Simon Commander, 1999. "On the dynamics of inequality in the transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 275-298, July.
  4. Keane, Michael P. & Prasad, Eswar S., 2006. "Changes in the structure of earnings during the Polish transition," Journal of Development Economics, Elsevier, vol. 80(2), pages 389-427, August.
  5. Hartmut Lehmann & Jonathan Wadsworth, 2002. "Wage Arrears and the Distribution of Earnings in Russia," CERT Discussion Papers 0202, Centre for Economic Reform and Transformation, Heriot Watt University.
  6. Belton M. Fleisher & Klara Sabirianova Peter & Xiaojun Wang, 2004. "Returns to Skills and the Speed of Reforms: Evidence from Central and Eastern Europe, China, and Russia," William Davidson Institute Working Papers Series 2004-703, William Davidson Institute at the University of Michigan.
  7. Krstic, Gorana & Litchfield, Julie & Reilly, Barry, 2007. "An anatomy of male labour market earnings inequality in Serbia, 1996-2003," Economic Systems, Elsevier, vol. 31(1), pages 97-114, March.
  8. Simon Clarke, 2002. "Market and institutional determinants of wage differentiation in Russia," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 628-648, July.
  9. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
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