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Ownership and Wage Differentiation in Russia

  • Gimpelson, V.

    (CLMS, HSE, Moscow, Russia)

  • Kapeliushnikov, R.

    (CLMS, HSE, Moscow, Russia)

  • Lukyanova, A.

    (CLMS, HSE, Moscow, Russia)

  • Ryzhikova, Z.

    (Rosstat, Moscow, Russia)

  • Kulyaeva, G.

    (Rosstat, Moscow, Russia)

The authors examine the relationship between the forms of ownership and wages. It uses a unique dataset that includes over 700 thousands worker observations and allows identifying narrowly defined occupations and industries. The analysis based on the estimation of the Mincerian type earnings equation shows that wage differences across the forms of different ownership are significant. Employees in foreign-owned firms have systematically higher wages than comparable workers in similar domestic owned firms. They are followed in descending order by employees in mixed (publicprivate), Russian private, federal state and regional state companies. Municipal firms pay the lowest wages. Conditioning on 3-digit occupations and economic activities narrows the gaps but the pay ranking of the forms of ownership remains unchanged.

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Article provided by New Economic Association in its journal Journal of the New Economic Association.

Volume (Year): (2010)
Issue (Month): 5 ()
Pages: 48-72

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Handle: RePEc:nea:journl:y:2010:i:5:p:48-72
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  1. Moulton, Brent R, 1990. "A Reexamination of the Federal-Private Wage Differential in the United States," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 270-93, April.
  2. Ehrenberg, Ronald G. & Schwarz, Joshua L., 1987. "Public-sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 22, pages 1219-1260 Elsevier.
  3. J. David Brown & John S. Earle & Almos Telegdy, 2005. "Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia, and Ukraine," Upjohn Working Papers and Journal Articles 05-125, W.E. Upjohn Institute for Employment Research.
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  5. Malcomson, J., 1998. "Individual employment contracts," Discussion Paper Series In Economics And Econometrics 9804, Economics Division, School of Social Sciences, University of Southampton.
  6. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
  7. Peter J. Luke & Mark E. Schaffer, 1999. "Wage Determination in Russia: An Econometric Investigation," CERT Discussion Papers 9908, Centre for Economic Reform and Transformation, Heriot Watt University.
  8. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Cathy Pattillo & Mans S–derbom & Francis Teal & Albert Zeufack, 2003. "Risk Sharing in Labor Markets," World Bank Economic Review, World Bank Group, vol. 17(3), pages 349-366, December.
  9. David G. Blanchflower & Andrew J. Oswald & Peter Sanfey, 1992. "Wages, Profits and Rent-Sharing," NBER Working Papers 4222, National Bureau of Economic Research, Inc.
  10. Steven Stillman, 2000. "The Determinants of Private and Government Sector Earnings in Russia," Working Papers 00-17, RAND Corporation.
  11. Shakhnovich Ruvim & Yudashkina Galina, 2001. "Wage-Setting and Employment Behavior of Enterprises during the Period of Economic Transition," EERC Working Paper Series 01-04e, EERC Research Network, Russia and CIS.
  12. Dale Belman & John S. Heywood, 2004. "Public wage differentials and the treatment of occupational differences," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(1), pages 135-152.
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