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Where Do Public Workers Live Well? Public-Private Wage Gaps in Russia's Regions

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  • Sharunina, A.

    (Centre for Labour Market Studies, National Research University Higher School of Economics, Moscow, Russia)

Abstract

In this paper we investigate regional public-private wage differentials in Russia. Using the October survey data for the period 2005-2013, we show that there are significant regional differences in wage gap. Subsequently, the relationship between variation of wage gap and socio-demographic regional characteristics was examined. The results show that regional differences in the wage gap are caused mainly by regional structure of employment and impact of the economic and budgetary capacity of regions. The study shows that the underpayment of public sector workers (relative to similar private sector workers) is greater in regions with high GDP per capita and a low share of transfers to the regional budget. Furthermore, a large concentration of public service consumers leads to a large cross-sector wage gap.

Suggested Citation

  • Sharunina, A., 2016. "Where Do Public Workers Live Well? Public-Private Wage Gaps in Russia's Regions," Journal of the New Economic Association, New Economic Association, vol. 30(2), pages 105-128.
    • Handle: RePEc:nea:journl:y:2016:i:30:p:105-128
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    References listed on IDEAS

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    Cited by:

    1. Lukyanova, Anna, 2021. "What keeps public sector workers in low-paid jobs? The role of self-selection and non-cognitive skills in explaining the public-private wage gap," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 62, pages 32-53.

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    More about this item

    Keywords

    public private wage gap; public sector; regions; Russia;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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