Effects of Minimum Wages on the Russian Wage Distribution
AbstractThe available minimum wage literature is mostly based on evidence from developed countries or developing countries of Latin America. Little empirical work has been done on the effects of minimum wages in transition economies, where labour institutions experienced rapid changes and law enforcement differs in many important ways. This paper presents the first empirical evidence on minimum wage effects for Russia, the largest transition economy. I use regional variation in the relative level of the federal minimum wage to identify the impact of the threefold increase in the real value of the minimum wage on the Russian wage distribution between 2005 and 2009. The analysis suggests that the minimum wage can account for the bulk of the decline in the lower tail inequality, particularly for females.
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Bibliographic InfoPaper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 09/EC/2011.
Length: 34 pages
Date of creation: 2011
Date of revision:
Publication status: Published in WP BRP Series: Economics / EC, December 2011, pages 1-34
minimum wages; wage distribution; transition economies; Russia.;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
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