Wage Determination in Rural Russia: A Stochastic Frontier Model

Post-Communist Economies, Vol. 18, No. 3, pp. 315-326, 2006

Posted: 13 May 2011 Last revised: 10 May 2015

See all articles by Constantin Ogloblin

Constantin Ogloblin

Georgia Southern University -- Dept. of Finance and Economics

Gregory J. Brock

Georgia Southern University - Department of Economics

Date Written: September 11, 2006

Abstract

This article examines wages in rural Russia after the first decade of economic transition using data from a nationally representative household survey. The stochastic frontier analysis reveals that Russia’s rural labour markets place high value on human capital. The overall level of rural wages, however, is very low, with the median wage 10% below the official subsistence level. The gender pay gap severely depresses women’s wages. A woman with the same skills as a man is paid only 47% of the man’s wage. Rural workers who receive income from their personal plots accept significantly lower wages. Private firms pay considerably higher wages than state or collectively owned firms, but account only for one fifth of rural workers.

Keywords: stochastic frontier, rural Russia, wage efficiency

Suggested Citation

Ogloblin, Constantin and Brock, Gregory, Wage Determination in Rural Russia: A Stochastic Frontier Model (September 11, 2006). Post-Communist Economies, Vol. 18, No. 3, pp. 315-326, 2006, Available at SSRN: https://ssrn.com/abstract=1838489

Constantin Ogloblin

Georgia Southern University -- Dept. of Finance and Economics ( email )

P.O. Box 8152
Statesboro, GA 30460
United States

Gregory Brock (Contact Author)

Georgia Southern University - Department of Economics ( email )

P.O. Box 8153
Statesboro, GA 30460-8153
United States
912-478-5579 (Phone)

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