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Wage Determination in Rural Russia: A Stochastic Frontier Model

  • Constantin Ogloblin
  • Gregory Brock

This article examines wages in rural Russia after the first decade of economic transition using data from a nationally representative household survey. The stochastic frontier analysis reveals that Russia's rural labour markets place high value on human capital. The overall level of rural wages, however, is very low, with the median wage 10% below the official subsistence level. The gender pay gap severely depresses women's wages. A woman with the same skills as a man is paid only 47% of the man's wage. Rural workers who receive income from their personal plots accept significantly lower wages. Private firms pay considerably higher wages than state or collectively owned firms, but account only for one fifth of rural workers.

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Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 18 (2006)
Issue (Month): 3 ()
Pages: 315-326

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Handle: RePEc:taf:pocoec:v:18:y:2006:i:3:p:315-326
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  1. Polachek, Solomon W & Yoon, Bong Joon, 1996. "Panel Estimates of a Two-Tiered Earnings Frontier," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(2), pages 169-78, March-Apr.
  2. Oglobin, C., 2005. "The Gender Earnings Differential in Russia After a Decade of Economic Transition," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(3).
  3. Oglobin, C., 2005. "The Sectoral Distribution of Employment and Job Segregation by Gender in Russia," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 5(2).
  4. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
  5. Polachek, Solomon W. & Robst, John, 1998. "Employee labor market information: comparing direct world of work measures of workers' knowledge to stochastic frontier estimates," Labour Economics, Elsevier, vol. 5(2), pages 231-242, June.
  6. Polachek, Solomon W & Yoon, Bong Joon, 1987. "A Two-tiered Earnings Frontier Estimation of Employer and Employee Information in the Labor Market," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 296-302, May.
  7. 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.
  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. Constantin G. Ogloblin, 1999. "The Gender earnings differential in the Russian transition economy," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(4), pages 602-627, July.
  10. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  11. Constantin G. Ogloblin, 1999. "The Gender Earnings Differential in the Russian Transition Economy," ILR Review, Cornell University, ILR School, vol. 52(4), pages 602-627, July.
  12. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  13. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
  14. Hofler, Richard A. & Polachek, Solomon W., 1985. "A new approach for measuring wage ignorance in the labor market," Journal of Economics and Business, Elsevier, vol. 37(3), pages 267-276, August.
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