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How unfair is the inequality of wage earnings in Russia ? estimates from panel data

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  • Tiwari,Sailesh
  • Lara Ibarra,Gabriel
  • Narayan,Ambar

Abstract

This paper attempts to determine the extent to which inequality in wage earnings in the Russian Federation is unfair. Unlike other similar attempts that can, at best, produce a lower bound on the estimate of the share of inequality that is unfair, this paper exploits the longitudinal nature of the data to come up with a lower bound as well as an upper bound. The upper bound is further refined to take into account the indirect effect of circumstances at birth (gender, parental wealth, etc.) on effort. Results show that the upper bound on the inequality of opportunity may be three to four times the measured lower bound and significantly higher for females than males in the sample. Finally, comparison with the United States and Germany show that although total inequality is lower in Russia, the share of unfair inequality is distinctly larger. The markedly large explanatory role of extraneous factors, such as gender and parental characteristics, in wage inequality calls for a close examination of governments? efforts to address inequities in the labor market.

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  • Tiwari,Sailesh & Lara Ibarra,Gabriel & Narayan,Ambar, 2015. "How unfair is the inequality of wage earnings in Russia ? estimates from panel data," Policy Research Working Paper Series 7291, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7291
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    References listed on IDEAS

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    1. Ravi Kanbur & Adam Wagstaff, 2016. "How Useful Is Inequality of Opportunity as a Policy Construct?," International Economic Association Series, in: Kaushik Basu & Joseph E. Stiglitz (ed.), Inequality and Growth: Patterns and Policy, chapter 4, pages 131-150, Palgrave Macmillan.
    2. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 247-281.
    3. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 179-197, August.
    4. Anthony Shorrocks, 2013. "Decomposition procedures for distributional analysis: a unified framework based on the Shapley value," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 99-126, March.
    5. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
    6. Lukiyanova, Anna & Oshchepkov, Aleksey, 2012. "Income mobility in Russia (2000–2005)," Economic Systems, Elsevier, vol. 36(1), pages 46-64.
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    Cited by:

    1. Lara Ibarra,Gabriel & Martinez Cruz,Adan L., 2015. "Exploring the sources of downward bias in measuring inequality of opportunity," Policy Research Working Paper Series 7458, The World Bank.

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    Keywords

    Gender and Law; Equity and Development; Gender and Development; Inequality; Poverty Impact Evaluation;
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