WTO Accession and the Labor Market: Estimations for Russia
The paper investigates potential impact of Russia’s WTO accession on the labor market by estimating various labor market elasticities with respect to trade liberalization in Russia in the 90-ies. In particular, the influence of tariff reduction on demand for labor is estimated, intersectoral employment flows in recent years and their determinants are studied, as well as determinants of sectoral wage premiums and of wage differentials between skilled and unskilled labor. The estimated elasticities of labor demand and wages show to be of very moderate size implying that one need not expect a dramatic influence of Russia’s WTO accession on the labor market provided the size of the shock is comparable to the one of the increased country openness during the 90-ies.
|Date of creation:||Oct 2003|
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