Wage Differentials between the State and Private Sectors in Moscow

17 Pages Posted: 1 May 2004

See all articles by Branko Jovanovic

Branko Jovanovic

CapAnalysis

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Abstract

In this study, the 1997 Russian Labor Force Survey is used to investigate wage differentials between the state and the private sector in the city of Moscow. Our analysis demonstrates that substantial differences exist between private and state sector wages. We estimate the gap between private and state sector wages to be 14.3 percent for men and 18.3 percent for women. We also find gender differences in wages. Men in the private sector earn on average 23.7 percent more than women. The gender wage gap in the state sector is even higher at 32.5 percent. In the state sector, wages for both men and women increase as years of tenure increase. But in the private sector, this is only true for men; women earn no return to tenure. The probability of employment in the private sector decreases with age and tenure.

Suggested Citation

Jovanovic, Branko and Lokshin, Michael, Wage Differentials between the State and Private Sectors in Moscow. Review of Income and Wealth, Vol. 50, No. 1, pp. 107-123, March 2004. Available at SSRN: https://ssrn.com/abstract=522057

Branko Jovanovic (Contact Author)

CapAnalysis ( email )

Washington, DC 20004
United States

Michael Lokshin

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-1772 (Phone)
202-522-1153 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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