Market and institutional determinants of wage differentiation in Russia
AbstractUsing a range of official and survey data, the author evaluates the relative success of two approaches-competitive labor market theory and industrial relations theory/institutional economics-in explaining wage determination in Russia. Following a review of the analysis of wage determination by an influential team of World Bank economists, the author shows that increased wage inequality in Russia is dominated by inequality within occupational categories within local labor markets. Such inequality, he suggests, is primarily associated with inter-firm differences in wage levels, rather than barriers to labor mobility or differences in 'human capital.' Such a pattern of differentiation entirely accords with the analyses of those institutional economists and industrial relations theorists who stress the role of the wage in regulating and motivating the labor force above its role in securing labor market equilibrium. The paper concludes by outlining the institutional framework of wage determination that underlies the observed results. (Author's abstract.)
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Bibliographic InfoArticle provided by ILR Review, Cornell University, ILR School in its journal ILR Review.
Volume (Year): 55 (2002)
Issue (Month): 4 (July)
Postal: 381 Ives East, Cornell University, Ithaca, NY 14853-3901
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- Thomas Dohmen & Hartmut Lehmann & Mark E. Schaffer, 2007.
"Wage determination and wage inequality inside a Russian firm in late transition: Evidence from personnel data - 1997 to 2002,"
CERT Discussion Papers
0704, Centre for Economic Reform and Transformation, Heriot Watt University.
- Dohmen, Thomas & Lehmann, Hartmut & Schaffer, Mark E., 2007. "Wage determination and wage inequality inside a Russian firm in late transition: Evidence from personnel data – 1997 to 2002," Open Access publications from Maastricht University urn:nbn:nl:ui:27-19177, Maastricht University.
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- Lukiyanova, A., 2011. "Wage Inequality in Russian Economic Transition (1991–2008): Stylized Facts and Explanations," Journal of the New Economic Association, New Economic Association, issue 12, pages 124-147.
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