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The elasticity of labor supply in Russia

Author

Listed:
  • Larin, Alexander

    () (Higher School of Economics (Nizhnii Novgorod) Russia)

  • Maksimov, Andrey

    () (Higher School of Economics (Nizhnii Novgorod) Russia)

  • Chernova, Daria

    () (Higher School of Economics (Nizhnii Novgorod) Russia)

Abstract

The paper estimates the wage elasticity of labor supply in Russia. As a measure of labor supply elasticity, the percent change of the probability of having a job in response to wage change is used. The paper shows that an estimate of the elasticity can be obtained from the two-step Heckman’s procedure. Empirical analysis is based on the RLMS–HSE data for the period from 1994 to 2014. The main conclusion is that the estimate of labor supply elasticity in Russia is significantly higher than zero and lower than one.

Suggested Citation

  • Larin, Alexander & Maksimov, Andrey & Chernova, Daria, 2016. "The elasticity of labor supply in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 41, pages 47-61.
  • Handle: RePEc:ris:apltrx:0284
    as

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    References listed on IDEAS

    as
    1. Arrufat, Jose Luis & Zabalza, Antonio, 1986. "Female Labor Supply with Taxation, Random Preferences, and Optimization Errors," Econometrica, Econometric Society, vol. 54(1), pages 47-63, January.
    2. Alena Bièáková & Jiøí Slaèálek & Michal Slavík, 2011. "Labor Supply after Transition: Evidence from the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 61(4), pages 327-347, August.
    3. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-1143, Nov.-Dec..
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, September.
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    More about this item

    Keywords

    labor supply elasticity; RLMS–HSE;

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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