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Wage discrimination against foreign workers in Russia

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  • Vakulenko, Elena
  • Leukhin, Roman

Abstract

We try to determine with the help of the Oaxaca–Blinder decomposition technique whether foreign workers are discriminated against in Russia. We use the Russian Ministry of Labor (Rostrud) data on migrants’ applications and the Russian Longitudinal Monitoring Survey (RLMS, provided by the Higher School of Economics) for the period 2009–2013. We show that there is significant discrimination against foreign workers. The average salary of Russian workers with the same level of productivity as migrants exceeds migrants’ average salary by 40%. The industries in which the workers are employed have made most substantial contribution to the discrimination gap. Moreover, there is evidence that the lower salaries of foreign workers do not reduce the salaries of Russians employed in similar positions.

Suggested Citation

  • Vakulenko, Elena & Leukhin, Roman, 2017. "Wage discrimination against foreign workers in Russia," Russian Journal of Economics, Elsevier, vol. 3(1), pages 83-100.
    • Handle: RePEc:eee:rujoec:v:3:y:2017:i:1:p:83-100
    DOI: 10.1016/j.ruje.2017.02.006
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    Cited by:

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    2. Chan, Chi Shing & Kwan, Fung & Lei, Ka Chon, 2022. "Wage differentials between local and foreign workers in Macao: Discrimination?," Journal of Asian Economics, Elsevier, vol. 81(C).
    3. Iuliia Naidenova & Cornel Nesseler & Petr Parshakov & Aleksei Chusovliankin, 2020. "After the Crimea crisis: Employee discrimination in Russia and Ukraine," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-17, October.
    4. Gui Ye & Yuhe Wang & Yuxin Zhang & Liming Wang & Houli Xie & Yuan Fu & Jian Zuo, 2019. "Impact of Migrant Workers on Total Factor Productivity in Chinese Construction Industry," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    5. Polyakova, Evgeniya & Smirnykh, Larisa, 2016. "The earning differential between natives and individuals with immigrant background in Russia: The role of ethnicity," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 43, pages 52-72.
    6. Anna Lialina, 2019. "Labor market security in the light of external labor migration: new theoretical findings," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1205-1225, March.

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    More about this item

    Keywords

    J31; J61; R23; discrimination; Oaxaca–Blinder decomposition; international labor migration;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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