Advanced Search
MyIDEAS: Login to save this paper or follow this series

Wage Determination in Russia: An Econometric Investigation

Contents:

Author Info

  • Luke, Peter L.

    (CERT (Centre for Economic Reform and Transformation))

  • Schaffer, Mark E

    ()
    (Heriot-Watt University, Edinburgh)

Abstract

Using a firm level dataset from four regions of Russia covering 1996/97, an investigation was carried out into how the surplus created within the firm is divided between profits and wages. An efficient bargaining framework based on the work of Svejnar (1986) is employed which takes into account the alternative wage or outside option available to employees in the firm as well as the value added per employee. Statistical differences in the share of the surplus taken by employees employed in state, private and mixed forms of firms are found. In addition, the results prove sensitive to the presence of outliers and influential observations. A variety of diagnostic methods are employed to identify these influential observations and robust methods are employed to lessen the influence of them. Whereas in practice some of the diagnostic and robust methods utilised proved incapable of identifying or accommodating the gross outlier(s) in the data, the more successful methods included robust regression, Winsorising, the Hadi and Siminoff algorithm, Cook’s Distance and Covratio.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp143.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 143.

as in new window
Length: 42 pages
Date of creation: Apr 2000
Date of revision:
Handle: RePEc:iza:izadps:dp143

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: Russian labour markets; efficient bargaining; outliers; regression diagnostics; robust regression;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Orley Ashenfelter & James N. Brown, 1985. "Testing the Efficiency of Employment Contracts," Working Papers 573, Princeton University, Department of Economics, Industrial Relations Section..
  2. Lehmann, Hartmut & Wadsworth, Jonathan & Acquisti,Alessandro, 1998. "Grime And Punishment: Job Insecurity And Wage Arrears in The Russian Federation," Economics Technical Papers, Trinity College Dublin, Department of Economics 986, Trinity College Dublin, Department of Economics.
  3. Prasnikar, Janez, et al, 1994. "Behavior of Participatory Firms in Yugoslavia: Lessons for Transforming Economies," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 728-41, November.
  4. Lockwood, Ben & Manning, Alan, 1989. "Dynamic Wage-Employment Bargaining with Employment Adjustment Costs," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(398), pages 1143-58, December.
  5. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, American Economic Association, vol. 71(5), pages 896-908, December.
  6. Currie, J., 1990. "Employment Determination In A Unionized Public Sector Labor Market: The Case Of Ontario'S School Teachers," Papers, California Los Angeles - Applied Econometrics 20, California Los Angeles - Applied Econometrics.
  7. Lehmann, Hartmut & Wadsworth, Jonathan & Acquisti, Alessandro, 1999. "Grime and Punishment: Insecurity and Wage Arrears in the Russian Federation," IZA Discussion Papers 65, Institute for the Study of Labor (IZA).
  8. MaCurdy, Thomas E & Pencavel, John H, 1986. "Testing between Competing Models of Wage and Employment Determination in Unionized Markets," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(3), pages S3-S39, June.
  9. Svejnar, J., 1984. "Bargaining power, fear of disagreement and wage settlements: theory and evidence from U.S. industry," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1984037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Reiss, Peter C., 1990. "Detecting multiple outliers with an application to R&D productivity," Journal of Econometrics, Elsevier, Elsevier, vol. 43(3), pages 293-315, March.
  11. Layard, Richard & Nickell, Stephen, 1990. "Is Unemployment Lower if Unions Bargain over Employment?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(3), pages 773-87, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. T. Dohmen & H. Lehmann & M. E. Schaffer, 2007. "Wage determination and wage inequality inside a Russian firm in late transition: Evidence from personnel data - 1997 to 2002," Working Papers 606, Dipartimento Scienze Economiche, Universita' di Bologna.
  2. Maxim Bouev, 2005. "State Regulations, Job Search and Wage Bargaining: A Study in the Economics of the Informal Sector," William Davidson Institute Working Papers Series wp764, William Davidson Institute at the University of Michigan.
  3. Jozef Konings & Hartmut Lehmann, 2002. "Marshall and Labor Demand in Russia: Going Back to Basics," CERT Discussion Papers, Centre for Economic Reform and Transformation, Heriot Watt University 0203, Centre for Economic Reform and Transformation, Heriot Watt University.
  4. Jan J. Rutkowski & Stefano Scarpetta, 2005. "Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7408, August.
  5. Gimpelson, V. & Kapeliushnikov, R. & Lukyanova, A. & Ryzhikova, Z. & Kulyaeva, G., 2010. "Ownership and Wage Differentiation in Russia," Journal of the New Economic Association, New Economic Association, New Economic Association, issue 5, pages 48-72.
  6. Dobbelaere, Sabien, 2004. "Ownership, firm size and rent sharing in Bulgaria," Labour Economics, Elsevier, Elsevier, vol. 11(2), pages 165-189, April.
  7. Monteiro, Natália Pimenta & Portela, Miguel & Straume, Odd Rune, 2010. "Firm Ownership and Rent Sharing," IZA Discussion Papers 4909, Institute for the Study of Labor (IZA).
  8. Elizabeth Brainerd, 2000. "How Does Privatization Affect Workers? The Case of the Russian Mass Privatization Program," William Davidson Institute Working Papers Series 303, William Davidson Institute at the University of Michigan.
  9. Ogloblin, Constantin & Brock, Gregory, 2005. "Wage determination in urban Russia: Underpayment and the gender differential," Economic Systems, Elsevier, vol. 29(3), pages 325-343, September.
  10. R. Kapelyushnikov., 2004. "Wage-setting Mechanisms in the Russian Industry," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 4.
  11. S. Dobbelaere, 2003. "Ownership, Firm Size and Rent Sharing in a Transition Country," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 03/170, Ghent University, Faculty of Economics and Business Administration.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp143. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.