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https://ssrn.com/abstract=1329579
 
 

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


Vladimir Gimpelson


National Research University Higher School of Economics; IZA Institute of Labor Economics

Anna Lukiyanova


National Research University Higher School of Economics


IZA Discussion Paper No. 3941

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.

Number of Pages in PDF File: 29

Keywords: public sector

JEL Classification: J31, J45


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Date posted: January 19, 2009  

Suggested Citation

Gimpelson, Vladimir and Lukiyanova, Anna, Are Public Sector Workers Underpaid in Russia? Estimating the Public-Private Wage Gap. IZA Discussion Paper No. 3941. Available at SSRN: https://ssrn.com/abstract=1329579

Contact Information

Vladimir Gimpelson (Contact Author)
National Research University Higher School of Economics ( email )
Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany

Anna Lukiyanova
National Research University Higher School of Economics ( email )
Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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