Does the Russian Government Pay a "Fair" Wage: Review of Studies

Author:

Zhuravleva T.1

Affiliation:

1. Gaidar Institute for Economic Policy (Moscow, Russia)

Abstract

This paper surveys the literature on public-private sector wage differentials for Russian labor market. We give an overview of the main results and problems of the existing research. The authors unanimously confirm that in Russia private sector workers receive higher wages relative to their public sector counterparts. According to different estimates the "premium" varies between 7 and 40%. A correct evaluation of this "premium" is subject to debate and is a particular case of a more general econometric problem of wage differentials estimation. The main difficulties are related to data limitations, self-selection and omitted variables. Reasons for the existence of a stable private sector "premium" in Russia are not fully investigated.

Publisher

NP Voprosy Ekonomiki

Subject

Economics and Econometrics,Finance

Reference54 articles.

1. Balatsky E. V., Konyshev V. A. (2005). Russian model of public sector of economy. Moscow: Ekonomika. (In Russian).

2. Gimpelson V., Lukyanova A. (2006a). Are public servants underpaid in Russia? Estimating the public—private wage gap. Voprosy Ekonomiki, No. 6, pp. 81—106. (In Russian).

3. Gimpelson V., Lukyanova A. (2006b). To be a public servant in Russia: Lucky choice or bad luck? Ekonomicheskii Zhurnal VShE, Vol. 10, No. 4, pp. 557—589. (In Russian).

4. Gimpelson V.  E., Kapeliushnikov R. I. (eds.) (2007). Wages in Russia: Evolution and differentiation. Moscow: HSE Publ. (In Russian).

5. Gimpelson V., Kapeliushnikov R., Lukyanova A., Ryzhikova Z., Kulyaeva G. (2010). Forms of property in Russia: Wage differentials. Zhurnal Novoi Ekonomicheskoi Assotsiatsii, No. 5, pp. 48—72. (In Russian).

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