A Decade of Declining Earnings Inequality in the Russian Federation
Wage inequality decreased significantly in the Russian Federation over the 2000s. The economic expansion experienced throughout the decade led to an improvement in social indicators, with a large reduction in poverty rates and an increase in higher...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/08/24903668/decade-declining-earnings-inequality-russian-federation http://hdl.handle.net/10986/22435 |
| id |
okr-10986-22435 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-224352021-04-23T14:04:09Z A Decade of Declining Earnings Inequality in the Russian Federation Calvo, Paula Andrea Lopez-Calva, Luis-Felipe Posadas, Josefina JOBS EMPLOYMENT ECONOMIC GROWTH PRODUCTIVITY EFFECTS ACCOUNTING WAGE GAP PRODUCTION WAGE COMPRESSION SKILLED WORKERS RETIREMENT WAGE DIFFERENTIAL MINIMUM WAGE STRUCTURAL CHANGE DISPOSABLE INCOME INCOME FOREIGN OWNERSHIP SERVICE SECTOR EXPECTATIONS HIGH SCHOOL DROPOUTS AGE GROUP GDP PER CAPITA INFORMATION LABOR FORCE ELASTICITY MONITORING PREVIOUS DISCUSSION PUBLIC SERVICES POLITICAL ECONOMY ECONOMIC STRUCTURE JOB EFFECTS AGE CATEGORIES LABOR ECONOMICS DISTRIBUTION VARIABLES PAYING JOBS FIRM SIZE OWNERSHIP PRESENT STUDY REAL WAGES LABOR FORCE PARTICIPATION JOB INSECURITY UNPAID WORKERS PAID WORKERS TRENDS DRIVERS MALE WORKERS HIGH SCHOOL DROPOUT EARNINGS INEQUALITY LABOR MARKET INFLUENCE PRIVATE FIRM PER CAPITA INCOME EDUCATIONAL ATTAINMENT ECONOMIC MOBILITY MONEY WORKER INEQUALITY MEASURES INCOME INEQUALITY BASE YEAR PRODUCTIVITY WAGE DISPERSION TOTAL WAGES CRITERIA MARKETS HOUSEHOLD INCOME ORGANIZATIONS WAGE POLICIES INFLATION RATE STANDARDS LABOR ELASTICITY OF SUBSTITUTION TOTAL EMPLOYMENT HIGH WAGES GROSS DOMESTIC PRODUCT AVERAGING URBAN WORKERS FINANCE MINIMUM WAGES FEMALE LABOR MARKET ECONOMY UNEMPLOYMENT SKILL PREMIUM COLLEGE EDUCATION AVERAGE WAGES WORKERS YOUNG WORKERS WAGES POLICIES TOTAL WAGE FINANCIAL CRISIS WAGE INEQUALITY VALUE AVERAGE WAGE CLERKS STATE-OWNED ENTERPRISES DEMAND WAGE PREMIUM OCCUPATIONS NOMINAL WAGES OCCUPATION INCOME DISTRIBUTION PRIVATE FIRMS AGRICULTURE LABOR MARKET INSTITUTIONS DISADVANTAGED GROUPS RURAL WORKERS PRIVATE SECTOR MEASUREMENT EARNING RURAL EMPLOYMENT ECONOMIC RECOVERY ECONOMICS WAGE POLICY INFLATION RATES WAGE STRUCTURE GDP GROWTH RATE ECONOMIC EXPANSION EXTREME POVERTY FEMALE LABOR FORCE CRISES SUPPLY EMPLOYEE WAGE DIFFERENTIALS COLLEGE GRADUATES LAW LABOR MARKET ADJUSTMENT CONSUMER PRICE INDEX UNSKILLED WORKERS WAGE DISTRIBUTION LABOUR CONTRACTUAL WAGES LABOR MARKETS FINANCIAL SECTOR OUTCOMES PUBLIC SECTOR WORKERS INTERNATIONAL MARKETS PRIVATE SECTORS PRICES WAGE PREMIUMS DEVELOPMENT POLICY EMPLOYEES Wage inequality decreased significantly in the Russian Federation over the 2000s. The economic expansion experienced throughout the decade led to an improvement in social indicators, with a large reduction in poverty rates and an increase in higher education. In this context, wage inequality showed a sharp decline, with the Gini index on labor income decreasing by 18 percent between 2002 and 2012. Using data from the Russian Longitudinal Monitoring Survey, this paper documents the reduction in wage inequality and explores potential factors behind the trend. The analysis uses a decomposition technique proposed by Fortin, Lemieux, and Firpo (2011) to disentangle the main drivers behind changes in the wage distribution. The results suggest that wage structure effects are more important than composition effects for explaining changes in wage inequality. Institutional factors, such as minimum wage policies and changes in the returns to employment in different sectors and types of firms as well as the reduction of the skill premium, emerge as the most relevant factors for explaining changes in the wage structure. 2015-08-17T17:49:31Z 2015-08-17T17:49:31Z 2015-08 Working Paper http://documents.worldbank.org/curated/en/2015/08/24903668/decade-declining-earnings-inequality-russian-federation http://hdl.handle.net/10986/22435 English en_US Policy Research Working Paper;No. 7392 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Russian Federation |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
JOBS EMPLOYMENT ECONOMIC GROWTH PRODUCTIVITY EFFECTS ACCOUNTING WAGE GAP PRODUCTION WAGE COMPRESSION SKILLED WORKERS RETIREMENT WAGE DIFFERENTIAL MINIMUM WAGE STRUCTURAL CHANGE DISPOSABLE INCOME INCOME FOREIGN OWNERSHIP SERVICE SECTOR EXPECTATIONS HIGH SCHOOL DROPOUTS AGE GROUP GDP PER CAPITA INFORMATION LABOR FORCE ELASTICITY MONITORING PREVIOUS DISCUSSION PUBLIC SERVICES POLITICAL ECONOMY ECONOMIC STRUCTURE JOB EFFECTS AGE CATEGORIES LABOR ECONOMICS DISTRIBUTION VARIABLES PAYING JOBS FIRM SIZE OWNERSHIP PRESENT STUDY REAL WAGES LABOR FORCE PARTICIPATION JOB INSECURITY UNPAID WORKERS PAID WORKERS TRENDS DRIVERS MALE WORKERS HIGH SCHOOL DROPOUT EARNINGS INEQUALITY LABOR MARKET INFLUENCE PRIVATE FIRM PER CAPITA INCOME EDUCATIONAL ATTAINMENT ECONOMIC MOBILITY MONEY WORKER INEQUALITY MEASURES INCOME INEQUALITY BASE YEAR PRODUCTIVITY WAGE DISPERSION TOTAL WAGES CRITERIA MARKETS HOUSEHOLD INCOME ORGANIZATIONS WAGE POLICIES INFLATION RATE STANDARDS LABOR ELASTICITY OF SUBSTITUTION TOTAL EMPLOYMENT HIGH WAGES GROSS DOMESTIC PRODUCT AVERAGING URBAN WORKERS FINANCE MINIMUM WAGES FEMALE LABOR MARKET ECONOMY UNEMPLOYMENT SKILL PREMIUM COLLEGE EDUCATION AVERAGE WAGES WORKERS YOUNG WORKERS WAGES POLICIES TOTAL WAGE FINANCIAL CRISIS WAGE INEQUALITY VALUE AVERAGE WAGE CLERKS STATE-OWNED ENTERPRISES DEMAND WAGE PREMIUM OCCUPATIONS NOMINAL WAGES OCCUPATION INCOME DISTRIBUTION PRIVATE FIRMS AGRICULTURE LABOR MARKET INSTITUTIONS DISADVANTAGED GROUPS RURAL WORKERS PRIVATE SECTOR MEASUREMENT EARNING RURAL EMPLOYMENT ECONOMIC RECOVERY ECONOMICS WAGE POLICY INFLATION RATES WAGE STRUCTURE GDP GROWTH RATE ECONOMIC EXPANSION EXTREME POVERTY FEMALE LABOR FORCE CRISES SUPPLY EMPLOYEE WAGE DIFFERENTIALS COLLEGE GRADUATES LAW LABOR MARKET ADJUSTMENT CONSUMER PRICE INDEX UNSKILLED WORKERS WAGE DISTRIBUTION LABOUR CONTRACTUAL WAGES LABOR MARKETS FINANCIAL SECTOR OUTCOMES PUBLIC SECTOR WORKERS INTERNATIONAL MARKETS PRIVATE SECTORS PRICES WAGE PREMIUMS DEVELOPMENT POLICY EMPLOYEES |
| spellingShingle |
JOBS EMPLOYMENT ECONOMIC GROWTH PRODUCTIVITY EFFECTS ACCOUNTING WAGE GAP PRODUCTION WAGE COMPRESSION SKILLED WORKERS RETIREMENT WAGE DIFFERENTIAL MINIMUM WAGE STRUCTURAL CHANGE DISPOSABLE INCOME INCOME FOREIGN OWNERSHIP SERVICE SECTOR EXPECTATIONS HIGH SCHOOL DROPOUTS AGE GROUP GDP PER CAPITA INFORMATION LABOR FORCE ELASTICITY MONITORING PREVIOUS DISCUSSION PUBLIC SERVICES POLITICAL ECONOMY ECONOMIC STRUCTURE JOB EFFECTS AGE CATEGORIES LABOR ECONOMICS DISTRIBUTION VARIABLES PAYING JOBS FIRM SIZE OWNERSHIP PRESENT STUDY REAL WAGES LABOR FORCE PARTICIPATION JOB INSECURITY UNPAID WORKERS PAID WORKERS TRENDS DRIVERS MALE WORKERS HIGH SCHOOL DROPOUT EARNINGS INEQUALITY LABOR MARKET INFLUENCE PRIVATE FIRM PER CAPITA INCOME EDUCATIONAL ATTAINMENT ECONOMIC MOBILITY MONEY WORKER INEQUALITY MEASURES INCOME INEQUALITY BASE YEAR PRODUCTIVITY WAGE DISPERSION TOTAL WAGES CRITERIA MARKETS HOUSEHOLD INCOME ORGANIZATIONS WAGE POLICIES INFLATION RATE STANDARDS LABOR ELASTICITY OF SUBSTITUTION TOTAL EMPLOYMENT HIGH WAGES GROSS DOMESTIC PRODUCT AVERAGING URBAN WORKERS FINANCE MINIMUM WAGES FEMALE LABOR MARKET ECONOMY UNEMPLOYMENT SKILL PREMIUM COLLEGE EDUCATION AVERAGE WAGES WORKERS YOUNG WORKERS WAGES POLICIES TOTAL WAGE FINANCIAL CRISIS WAGE INEQUALITY VALUE AVERAGE WAGE CLERKS STATE-OWNED ENTERPRISES DEMAND WAGE PREMIUM OCCUPATIONS NOMINAL WAGES OCCUPATION INCOME DISTRIBUTION PRIVATE FIRMS AGRICULTURE LABOR MARKET INSTITUTIONS DISADVANTAGED GROUPS RURAL WORKERS PRIVATE SECTOR MEASUREMENT EARNING RURAL EMPLOYMENT ECONOMIC RECOVERY ECONOMICS WAGE POLICY INFLATION RATES WAGE STRUCTURE GDP GROWTH RATE ECONOMIC EXPANSION EXTREME POVERTY FEMALE LABOR FORCE CRISES SUPPLY EMPLOYEE WAGE DIFFERENTIALS COLLEGE GRADUATES LAW LABOR MARKET ADJUSTMENT CONSUMER PRICE INDEX UNSKILLED WORKERS WAGE DISTRIBUTION LABOUR CONTRACTUAL WAGES LABOR MARKETS FINANCIAL SECTOR OUTCOMES PUBLIC SECTOR WORKERS INTERNATIONAL MARKETS PRIVATE SECTORS PRICES WAGE PREMIUMS DEVELOPMENT POLICY EMPLOYEES Calvo, Paula Andrea Lopez-Calva, Luis-Felipe Posadas, Josefina A Decade of Declining Earnings Inequality in the Russian Federation |
| geographic_facet |
Europe and Central Asia Russian Federation |
| relation |
Policy Research Working Paper;No. 7392 |
| description |
Wage inequality decreased significantly
in the Russian Federation over the 2000s. The economic
expansion experienced throughout the decade led to an
improvement in social indicators, with a large reduction in
poverty rates and an increase in higher education. In this
context, wage inequality showed a sharp decline, with the
Gini index on labor income decreasing by 18 percent between
2002 and 2012. Using data from the Russian Longitudinal
Monitoring Survey, this paper documents the reduction in
wage inequality and explores potential factors behind the
trend. The analysis uses a decomposition technique proposed
by Fortin, Lemieux, and Firpo (2011) to disentangle the main
drivers behind changes in the wage distribution. The results
suggest that wage structure effects are more important than
composition effects for explaining changes in wage
inequality. Institutional factors, such as minimum wage
policies and changes in the returns to employment in
different sectors and types of firms as well as the
reduction of the skill premium, emerge as the most relevant
factors for explaining changes in the wage structure. |
| format |
Working Paper |
| author |
Calvo, Paula Andrea Lopez-Calva, Luis-Felipe Posadas, Josefina |
| author_facet |
Calvo, Paula Andrea Lopez-Calva, Luis-Felipe Posadas, Josefina |
| author_sort |
Calvo, Paula Andrea |
| title |
A Decade of Declining Earnings Inequality in the Russian Federation |
| title_short |
A Decade of Declining Earnings Inequality in the Russian Federation |
| title_full |
A Decade of Declining Earnings Inequality in the Russian Federation |
| title_fullStr |
A Decade of Declining Earnings Inequality in the Russian Federation |
| title_full_unstemmed |
A Decade of Declining Earnings Inequality in the Russian Federation |
| title_sort |
decade of declining earnings inequality in the russian federation |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/08/24903668/decade-declining-earnings-inequality-russian-federation http://hdl.handle.net/10986/22435 |
| _version_ |
1764451074757885952 |