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Are Public Sector Workers Underpaid in Russia? Estimating the Public-Private Wage Gap

Author

Listed:
  • Gimpelson, Vladimir

    () (CLMS, Higher School of Economics, Moscow)

  • Lukiyanova, Anna

    () (Higher School of Economics, Moscow)

Abstract

The paper starts with discussing institutional framework for public sector wage setting in Russia. Given that individual choice of the sector is endogenous to wages, the authors recommend alternative econometric techniques for the public-private wage gap estimation. Applying switching regression that allows correcting for non-random sector selection, the paper provides wage gap estimates for various demographic, occupational, and territorial population subgroups. As it is shown, there is significant cross-group variation in the wage gap. The paper concludes that to eliminate the negative gap wages in the public sector should be linked to the private sector wages at the regional level.

Suggested Citation

  • Gimpelson, Vladimir & Lukiyanova, Anna, 2009. "Are Public Sector Workers Underpaid in Russia? Estimating the Public-Private Wage Gap," IZA Discussion Papers 3941, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3941
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    Citations

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    Cited by:

    1. Anna Lukiyanova, 2015. "Earnings inequality and informal employment in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 469-516, April.
    2. Raúl Ramos & Esteban Sanromá & Hipólito Simón, 2014. "Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain," Hacienda Pública Española, IEF, vol. 208(1), pages 107-141, March.
    3. Günther G. Schulze & Bambang Suharnoko Sjahrir & Nikita Zakharov, 2016. "Corruption in Russia," Journal of Law and Economics, University of Chicago Press, vol. 59(1), pages 135-171.
    4. Anna Lukiyanova, 2011. "Effects of Minimum Wages on the Russian Wage Distribution," HSE Working papers WP BRP 09/EC/2011, National Research University Higher School of Economics.
    5. Calvo,Paula Andrea & Lopez-Calva,Luis-Felipe & Posadas,Josefina, 2015. "A decade of declining earnings inequality in the Russian Federation," Policy Research Working Paper Series 7392, The World Bank.
    6. repec:nea:journl:y:2018:i:37:p:203-212 is not listed on IDEAS
    7. M. Ivanova., 2015. "The Interaction between Public and Private Sector Wages," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    8. Köllő, János, 2013. "A közszféra bérszintje és a magánszektorból átlépők szelekciója 1997-2008 között
      [Public-sector pay and flows from the private to the public sector]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 523-554.
    9. Gustafsson, Björn & Li, Shi & Nivorozhkina, Ludmila & Wan, Haiyuan, 2015. "Yuan and Roubles: Comparing wage determination in urban China and Russia at the beginning of the new millennium," China Economic Review, Elsevier, vol. 35(C), pages 248-265.
    10. Vladimir Gimpelson & Anna Lukiyanova & Anna Sharunina, 2015. "Estimating the Public-Private Wage Gap in Russia: What Does Quantile Regression Tell Us?," HSE Working papers WP BRP 104/EC/2015, National Research University Higher School of Economics.
    11. Chris Sakellariou, 2012. "Central Government versus private sector wages and cognitive skills: evidence using endogenous switching regression," Applied Economics, Taylor & Francis Journals, vol. 44(25), pages 3275-3286, September.
    12. Anna Lukiyanova, 2013. "Earnings inequality and informal Employment in Russia," HSE Working papers WP BRP 37/EC/2013, National Research University Higher School of Economics.
    13. Sergey Kapelyuk, 2015. "The effect of minimum wage on poverty," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 389-423, April.
    14. Rebekka Christopoulou & Vassilis Monastiriotis, 2014. "The Greek Public Sector Wage Premium before the Crisis: Size, Selection and Relative Valuation of Characteristics," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 579-602, September.

    More about this item

    Keywords

    public sector;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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