The Determinants of Private and Government Sector Earnings in Russia
AbstractSo far little is known about how private sector earnings in Russia compare to those in the still strong government sector. This paper estimates sectoral earnings equations for rural and urban men and women which control for: (1) Self-selection into the workforce; and (2) Self-selection into either the private or government sector, while allowing for simultaneity in the selection decisions. The selection controls are found to have a considerable effect on the estimated sectoral earnings differentials for all four sample groups. Earnings differentials are examined by age, education, and unobserved skill. Expected earnings are found to be higher in the private sector for most groups.
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Bibliographic InfoPaper provided by RAND Corporation Publications Department in its series Working Papers with number 00-17.
Length: 48 pages
Date of creation: Nov 2000
Date of revision:
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More information through EDIRC
sectoral earnings; private sector; Russia; Heckman selection models;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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