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The Determinants of Private and Government Sector Earnings in Russia

  • Steven Stillman

So far little is known about how private sector earnings in Russia compare to those in the still strong government sector. This paper estimates sectoral earnings equations for rural and urban men and women which control for: (1) Self-selection into the workforce; and (2) Self-selection into either the private or government sector, while allowing for simultaneity in the selection decisions. The selection controls are found to have a considerable effect on the estimated sectoral earnings differentials for all four sample groups. Earnings differentials are examined by age, education, and unobserved skill. Expected earnings are found to be higher in the private sector for most groups.

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File URL: http://www.rand.org/content/dam/rand/pubs/drafts/2008/DRU2422.pdf
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Paper provided by RAND Corporation Publications Department in its series Working Papers with number 00-17.

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Length: 48 pages
Date of creation: Nov 2000
Date of revision:
Handle: RePEc:ran:wpaper:00-17
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  1. Guofu Tan & Justin Yifu Lin, 1999. "Policy Burdens, Accountability, and the Soft Budget Constraint," American Economic Review, American Economic Association, vol. 89(2), pages 426-431, May.
  2. Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March.
  3. Steven Stillman, 2000. "Labor Market Uncertainty and Private Sector Labor Supply in Russia," William Davidson Institute Working Papers Series 359, William Davidson Institute at the University of Michigan.
  4. Dustmann, C. & van Soest, A., 1997. "Public and Private Sector Wages of Male Workers in Germany," Economics Working Papers eco97/13, European University Institute.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  6. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-33, June.
  7. Stelcner, M. & Van Der Gaag, J. & Vijverberg, W., 1988. "Public-Private Sector Wage Differentials In Peru, 1985-86," Papers 41, World Bank - Living Standards Measurement.
  8. 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.
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