IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v55y2002i4p628-648.html

Market and Institutional Determinants of Wage Differentiation in Russia

Author

Listed:
  • Simon Clarke

Abstract

Using a range of official and survey data, the author evaluates the relative success of two approaches—competitive labor market theory and industrial relations theory/institutional economics—in explaining wage determination in Russia. Following a review of the analysis of wage determination by an influential team of World Bank economists, the author shows that increased wage inequality in Russia is dominated by inequality within occupational categories within local labor markets. Such inequality, he suggests, is primarily associated with inter-firm differences in wage levels, rather than barriers to labor mobility or differences in “human capital.†Such a pattern of differentiation entirely accords with the analyses of those institutional economists and industrial relations theorists who stress the role of the wage in regulating and motivating the labor force above its role in securing labor market equilibrium. The paper concludes by outlining the institutional framework of wage determination that underlies the observed results.

Suggested Citation

  • Simon Clarke, 2002. "Market and Institutional Determinants of Wage Differentiation in Russia," ILR Review, Cornell University, ILR School, vol. 55(4), pages 628-648, July.
    • Handle: RePEc:sae:ilrrev:v:55:y:2002:i:4:p:628-648
    DOI: 10.1177/001979390205500404
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979390205500404
    Download Restriction: no
    File URL: https://libkey.io/10.1177/001979390205500404?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Commander, Simon & Liberman, Leonid & Yemtsov, Ruslan, 1993. "Wage and employment decisions in the Russian economy : an analysis of developments in 1992," Policy Research Working Paper Series 1205, The World Bank.
    2. Richard Layard & Andrea Richter, 1995. "How much unemployment is needed for restructing: the Russian experience," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(1), pages 39-58, March.
    3. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(1), pages 47-64, Spring.
    4. Barry Reilly, 1999. "The gender pay gap in Russia during the transition, 1992‐96," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 245-264, March.
    5. L.A. Grogan, 1997. "Wage Dispersion in Russia," Tinbergen Institute Discussion Papers 97-075/3, Tinbergen Institute.
    6. Annette N. Brown, 1997. "The Economic Determinants of the Internal Migration Flows in Russia During Transition," William Davidson Institute Working Papers Series 89, William Davidson Institute at the University of Michigan.
    7. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, January.
    8. Newell, Andrew & Reilly, Barry, 1996. "The gender wage gap in Russia: Some empirical evidence," Labour Economics, Elsevier, vol. 3(3), pages 337-356, October.
    9. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
    10. Bob Arnot, 1988. "Controlling Soviet Labour," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-09231-4, December.
    11. Lester C. Thurow, 1998. "Wage Dispersion: “Who Done It?”," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(1), pages 25-37, September.
    12. Katz, Katarina, 1997. "Gender, Wages and Discrimination in the USSR: A Study of a Russian Industrial Town," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(4), pages 431-452, July.
    13. Simon Clarke, 1998. "Trade unions and the non‐payment of wages in Russia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 19(1/2), pages 68-94, February.
    14. Erica L. Groshen, 1991. "Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(3), pages 869-884.
    15. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas Dohmen & Hartmut Lehmann & Mark E. Schaffer, 2007. "Wage Determination and Wage Inequality Inside a Russian Firm in Late Transition: Evidence from Personnel Data - 1997 to 2002," ESCIRRU Working Papers 1, DIW Berlin, German Institute for Economic Research.
    2. Harald Hagemann & Vadim Kufenko, 2016. "Economic, structural and socio-psychological determinants of protests in Russia during 2011–2012," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(1), pages 3-30, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniela Andrén & Thomas Andrén, 2015. "Gender and occupational wage gaps in Romania: from planned equality to market inequality?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    2. World Bank, 2003. "The Russian Labor Market : Moving from Crisis to Recovery," World Bank Publications - Books, The World Bank Group, number 15007, April.
    3. Ogloblin, Constantin & Brock, Gregory, 2005. "Wage determination in urban Russia: Underpayment and the gender differential," Economic Systems, Elsevier, vol. 29(3), pages 325-343, September.
    4. Sergey Roshchin & Natalya Yemelina, 2021. "Gender wage gap decomposition methods: Comparative analysis," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 62, pages 5-31.
    5. Kathryn Anderson & Richard Pomfret, 2000. "Gender Effects of Transition: The Kyrgyz Republic," School of Economics and Public Policy Working Papers 2000-08, University of Adelaide, School of Economics and Public Policy.
    6. Ng, Ying Chu, 2004. "Economic development, human capital, and gender earnings differentials in China," Economics of Education Review, Elsevier, vol. 23(6), pages 587-603, December.
    7. L.A. Grogan, 1997. "Wage Dispersion in Russia," Tinbergen Institute Discussion Papers 97-075/3, Tinbergen Institute.
    8. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2022. "Returns to Education in European Emerging Markets: A Meta-Analytic Review," RRC Working Paper Series 95, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    9. Randall K. Filer & Jan Hanousek, 2002. "Data Watch: Research Data from Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 225-240, Winter.
    10. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    11. Newell, Andrew & Reilly, Barry, 2001. "The gender pay gap in the transition from communism: some empirical evidence," Economic Systems, Elsevier, vol. 25(4), pages 287-304, December.
    12. Jurajda, Stepan, 2003. "Gender wage gap and segregation in enterprises and the public sector in late transition countries," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 199-222, June.
    13. Shireen Kanji, 2011. "Labor Force Participation, Regional Location, and Economic Well-Being of Single Mothers in Russia," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 62-72, March.
    14. Malkova, Olga, 2020. "Did Soviet elderly employment respond to financial incentives? Evidence from pension reforms," Journal of Public Economics, Elsevier, vol. 182(C).
    15. Elizabeth Brainerd, 2000. "Women in Transition: Changes in Gender Wage Differentials in Eastern Europe and the Former Soviet Union," ILR Review, Cornell University, ILR School, vol. 54(1), pages 138-162, October.
    16. Gregory Schwartz, 2003. "Employment Restructuring in Russian Industrial Enterprises," Work, Employment & Society, British Sociological Association, vol. 17(1), pages 49-72, March.
    17. Keane, Michael P. & Prasad, Eswar S., 2006. "Changes in the structure of earnings during the Polish transition," Journal of Development Economics, Elsevier, vol. 80(2), pages 389-427, August.
    18. Ganguli, Ina & Terrell, Katherine, 2006. "Institutions, markets and men's and women's wage inequality: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 200-227, June.
    19. Jeff Borland, 2000. "Economic Explanations of Earnings Distribution Trends in the International Literature and Application to New Zealand," Treasury Working Paper Series 00/16, New Zealand Treasury.
    20. Johnes, Geraint, 2002. "A Tajik story: the labour market following war and transition," Economic Systems, Elsevier, vol. 26(1), pages 17-30, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:55:y:2002:i:4:p:628-648. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.