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Are Public Sector Workers Underpaid in Russia? Estimating the Public-Private Wage Gap

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Author Info

  • Gimpelson, Vladimir

    ()
    (CLMS, Higher School of Economics, Moscow)

  • Lukiyanova, Anna

    ()
    (Higher School of Economics, Moscow)

Abstract

The paper starts with discussing institutional framework for public sector wage setting in Russia. Given that individual choice of the sector is endogenous to wages, the authors recommend alternative econometric techniques for the public-private wage gap estimation. Applying switching regression that allows correcting for non-random sector selection, the paper provides wage gap estimates for various demographic, occupational, and territorial population subgroups. As it is shown, there is significant cross-group variation in the wage gap. The paper concludes that to eliminate the negative gap wages in the public sector should be linked to the private sector wages at the regional level.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3941.

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Length: 29 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:iza:izadps:dp3941

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Keywords: public sector;

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Cited by:
  1. Gustafsson, Björn Anders & Li, Shi & Nivorozhkina, Ludmila & Wan, Haiyuan, 2014. "Yuan and Roubles: Comparing Wage Determination in Urban China and Russia at the Beginning of the New Millennium," IZA Discussion Papers 8241, Institute for the Study of Labor (IZA).
  2. Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2014. "Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain," IZA Discussion Papers 8158, Institute for the Study of Labor (IZA).
  3. Anna Lukiyanova, 2013. "Earnings inequality and informal Employment in Russia," HSE Working papers WP BRP 37/EC/2013, National Research University Higher School of Economics.
  4. Anna Lukiyanova, 2011. "Effects of Minimum Wages on the Russian Wage Distribution," HSE Working papers WP BRP 09/EC/2011, National Research University Higher School of Economics.
  5. Köllő, János, 2013. "A közszféra bérszintje és a magánszektorból átlépők szelekciója 1997-2008 között
    [Public-sector pay and flows from the private to the public sector]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 523-554.

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