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Stay healthy - will the rest follow? The impact of health on wages in Russia

Author

Listed:
  • Kartseva, M.

    (Institute for Social Analysis and Forecasting at RANEPA, Moscow, Russia)

  • Kuznetsova, P.

    (Institute for Social Analysis and Forecasting at RANEPA, Moscow, Russia)

Abstract

In this article, we analyze the impact of health on wages in Russia in 2012-2019, using the data from the RLMS-HSE survey. As a measure of health impact we consider hour wages. Health is estimated by means of self-assessed health data. We use a Minner-type wage equation. To take into account self-selection, we use the Heckman procedure to deal with the unobservable heterogeneity; we employ the panel structure of the RLMS-HSE data. The impact of health on hour wages in Russia is significant, but not great: good and very good health corresponds to an increase in earnings of 2-5% compared to average health for men and 1-3% for women. Bad health significantly reduces wages, but when self-selection is taken into account, its effect becomes insignificant. The impact of health on wages is markedly increased for groups with a low level of education, which, in our opinion, may indicate a greater importance of health for unskilled and physical labor. The robustness of our results was tested using an alternative data source.

Suggested Citation

  • Kartseva, M. & Kuznetsova, P., 2022. "Stay healthy - will the rest follow? The impact of health on wages in Russia," Journal of the New Economic Association, New Economic Association, vol. 57(5), pages 55-70.
    • Handle: RePEc:nea:journl:y:2022:i:57:p:55-70
    DOI: 10.31737/2221-2264-2022-57-5-4
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    More about this item

    Keywords

    health; wages; education; gender; RLMS-HSE;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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