CEU eTD Collection (2008); Vlasovs, Aleksejs: Geographic Wage Inequality in Russia: the Role of Workforce Heterogeneity and Different Returns to Workers Characteristics

CEU Electronic Theses and Dissertations, 2008
Author Vlasovs, Aleksejs
Title Geographic Wage Inequality in Russia: the Role of Workforce Heterogeneity and Different Returns to Workers Characteristics
Summary This work explores spatial wage inequality in the Russian Federation and decomposes the interregional wage differences into the effects of workforce composition and returns to workers’ characteristics in order to find the main determinants of geographic earnings inequality at individual level. Applying the Oaxaca-Blinder decomposition to the Russian Longitudinal Monitoring Survey (RLMS) data from 1994-2004 (rounds 5, 9, and 13), I find that although workforce characteristics vary noticeably across the eight macro-regions of Russia, almost all the difference in real wages is due to different pricing of those characteristics and even more importantly due to the region specific fixed effects. Price-quantity correlation analysis reveals that returns to college education, work experience, and professional jobs are consistently larger in the regions where these attributes are scarcer, while returns to other characteristics exhibit time-varying patterns. Policy makers who aim to reduce the regional distortions in real earnings should consider taking a systemic approach.
Supervisor Almos M. Telegdy
Department Economics MA
Full texthttps://www.etd.ceu.edu/2008/vlasovs_aleksejs.pdf

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