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Real Wage Flexibility in Russia: Comparative Analysis

Author

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  • Vakulenko, E.

    (National Research University Higher School of Economics, Moscow, Russia)

  • Gurvich, E.

    (Economic Expert Group, Moscow, Russia
    Financial Research Institute, Moscow, Russia)

Abstract

Elasticity of real wages with respect to unemployment is measured for Russia. The estimates are compared to those obtained for a sample of advanced and transition countries by other authors. In order to make our conclusions more robust 3 different specifications are used to construct 'wage Phillips curve'. One model draws on data by region, two others draw on country-wide series. We find that regardless of the econometric specification real wage elasticity in Russia exceeds by far elasticity in all (or almost all) other countries for which comparable estimates are available. This evidences that high wage flexibility is an important salient feature of the Russian labor market. We obtain thus an explanation to the sustained low unemployment in the recent years despite marked output decline.

Suggested Citation

  • Vakulenko, E. & Gurvich, E., 2016. "Real Wage Flexibility in Russia: Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 31(3), pages 67-92.
  • Handle: RePEc:nea:journl:y:2016:i:31:p:67-92
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:rujoec:v:3:y:2017:i:4:p:411-424 is not listed on IDEAS
    2. repec:nea:journl:y:2018:i:37:p:203-212 is not listed on IDEAS

    More about this item

    Keywords

    Phillips curve; wage flexibility; Russia; unemployment rate; comparative analysis;

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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