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The rural/urban wage gap in the industrialisation of Russia, 1884–1910

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  • BORODKIN, LEONID
  • GRANVILLE, BRIGITTE
  • LEONARD, CAROL SCOTT

Abstract

This article presents econometric evidence of integration in rural and urban wages in Russia's Northwest in the late tsarist era. Using the Autoregressive Distributed Lag (ARDL) approach to co-integration and error correction modelling, we show the flexibility of the rural wage in response to the lagged rural/urban wage ratio. Applying the model developed by Boyer and Hatton (1994) and Hatton and Williamson (1991a, 1991b, 1992), we show the similarity of the wage gap in northwest Russia in the late tsarist era to that during industrialisation in the US, England and Western Europe. Although our evidence does not necessarily describe countrywide trends, it does support for an industrialising region the more positive view of the degree and nature of late tsarist economic growth. Growth was not slowing down, and there is little evidence of constraints on migration by traditional agrarian institutions.

Suggested Citation

  • Borodkin, Leonid & Granville, Brigitte & Leonard, Carol Scott, 2008. "The rural/urban wage gap in the industrialisation of Russia, 1884–1910," European Review of Economic History, Cambridge University Press, vol. 12(01), pages 67-95, April.
  • Handle: RePEc:cup:ereveh:v:12:y:2008:i:01:p:67-95_00
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    1. Williamson, Jeffrey G, 1987. "Did English Factor Markets Fail during the Industrial Revolution?," Oxford Economic Papers, Oxford University Press, vol. 39(4), pages 641-678, December.
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    Cited by:

    1. Nafziger, Steven, 2010. "Peasant communes and factor markets in late nineteenth-century Russia," Explorations in Economic History, Elsevier, vol. 47(4), pages 381-402, October.
    2. Andrei Markevich & Ekaterina Zhuravskaya, 2017. "The Economic Effects of the Abolition of Serfdom: Evidence from the Russian Empire," Working Papers w0237, Center for Economic and Financial Research (CEFIR).

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