IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2016i30p105-128.html
   My bibliography  Save this article

Where Do Public Workers Live Well? Public-Private Wage Gaps in Russia's Regions

Author

Listed:
  • Sharunina, A.

    (Centre for Labour Market Studies, National Research University Higher School of Economics, Moscow, Russia)

Abstract

In this paper we investigate regional public-private wage differentials in Russia. Using the October survey data for the period 2005-2013, we show that there are significant regional differences in wage gap. Subsequently, the relationship between variation of wage gap and socio-demographic regional characteristics was examined. The results show that regional differences in the wage gap are caused mainly by regional structure of employment and impact of the economic and budgetary capacity of regions. The study shows that the underpayment of public sector workers (relative to similar private sector workers) is greater in regions with high GDP per capita and a low share of transfers to the regional budget. Furthermore, a large concentration of public service consumers leads to a large cross-sector wage gap.

Suggested Citation

  • Sharunina, A., 2016. "Where Do Public Workers Live Well? Public-Private Wage Gaps in Russia's Regions," Journal of the New Economic Association, New Economic Association, vol. 30(2), pages 105-128.
    • Handle: RePEc:nea:journl:y:2016:i:30:p:105-128
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2016-30-105-128r.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:hal:spmain:info:hdl:2441/8846 is not listed on IDEAS
    2. Carlo Dell'Aringa & Claudio Lucifora & Federica Origo, 2007. "Public Sector Pay And Regional Competitiveness. A First Look At Regional Public–Private Wage Differentials In Italy," Manchester School, University of Manchester, vol. 75(4), pages 445-478, July.
    3. Yann Algan & Pierre Cahuc & André Zylberberg, 2002. "Public employment and labour market performance [‘On the benefits from rigid labour markets: Norms, market failures and social insurances’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(34), pages 7-66.
    4. Andrew Henley & Dennis Thomas, 2001. "Public Service Employment and the Public- Private Wage Differential in British Regions," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 229-240.
    5. Morley Gunderson, 1979. "Earnings Differentials between the Public and Private Sectors," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 228-242, May.
    6. Anna Lukiyanova, 2011. "Effects of Minimum Wages on the Russian Wage Distribution," HSE Working papers WP BRP 09/EC/2011, National Research University Higher School of Economics.
    7. Albert Alesina & Stephan Danninger & Massimo Rostagno, 2001. "Redistribution Through Public Employment: The Case of Italy," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 1-2.
    8. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    9. Dominique Meurs & Cyriaque Edon, 2007. "France: A Limited Effect Of Regions On Public Wage Differentials?," Manchester School, University of Manchester, vol. 75(4), pages 479-500, July.
    10. repec:hal:wpspec:info:hdl:2441/8846 is not listed on IDEAS
    11. Шарунина Анна Вячеславовна, 2013. "Является Ли Российский «Бюджетник» «Неудачником»? Анализ Межсекторных Различий В Оплате Труда," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 17(1), pages 75-107.
    12. T. Zhuravleva., 2015. "Does the Russian Government Pay a "Fair" Wage: Review of Studies," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lukyanova, Anna, 2021. "What keeps public sector workers in low-paid jobs? The role of self-selection and non-cognitive skills in explaining the public-private wage gap," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 62, pages 32-53.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caponi, Vincenzo, 2017. "Public employment policies and regional unemployment differences," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 1-12.
    2. Gabriele Cardullo, 2017. "The Welfare and Employment Effects of Centralized Public Sector Wage Bargaining," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(2), pages 490-510, April.
    3. Vincenzo Caponi & Simone Nobili, 2024. "The effects of public sector employment on the economy," IZA World of Labor, Institute of Labor Economics (IZA), pages 3322-3322, June.
    4. Charlotte Senftleben-König, "undated". "Public Sector Employment and Local Multipliers," BDPEMS Working Papers 2014010, Berlin School of Economics.
    5. Becker, Sascha O. & Heblich, Stephan & Sturm, Daniel M., 2021. "The impact of public employment: Evidence from Bonn," Journal of Urban Economics, Elsevier, vol. 122(C).
    6. Carlo Dell'Aringa & Claudio Lucifora & Federica Origo, 2007. "Public Sector Pay And Regional Competitiveness. A First Look At Regional Public–Private Wage Differentials In Italy," Manchester School, University of Manchester, vol. 75(4), pages 445-478, July.
    7. Gabriela Grotkowska, 2016. "Regional variation in the public sector wage premium in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    8. Gabriele Cardullo, 2012. "Public Sector Wage Bargaining, Unemployment, and Inequality," DEP - series of economic working papers 2/2012, University of Genoa, Research Doctorate in Public Economics.
    9. Axel Heitmueller, 2006. "Public-private sector pay differentials in a devolved Scotland," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 295-323, November.
    10. Disney, Richard F & Gosling, Amanda, 2003. "A New Method for Estimating Public Sector Pay Premia: Evidence from Britain in the 1990's," CEPR Discussion Papers 3787, C.E.P.R. Discussion Papers.
    11. Maczulskij, Terhi, 2013. "Public–private sector wage differentials and the business cycle," Economic Systems, Elsevier, vol. 37(2), pages 284-301.
    12. Altan Aldan, 2021. "The multiplier effect of public employment on formal employment in the private sector: Evidence from Turkey," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1016-1031, May.
    13. Gimpelson, Vladimir & Lukiyanova, Anna & Sharunina, Anna, 2019. "Economics and Politics of the Public-Private Wage Gap (The Case of Russia)," IZA Discussion Papers 12247, Institute of Labor Economics (IZA).
    14. Jofre-Monseny, Jordi & Silva, José I. & Vázquez-Grenno, Javier, 2020. "Local labor market effects of public employment," Regional Science and Urban Economics, Elsevier, vol. 82(C).
    15. Vladimir Gimpelson & Anna Lukiyanova & Anna Sharunina, 2015. "Estimating the Public-Private Wage Gap in Russia: What Does Quantile Regression Tell Us?," HSE Working papers WP BRP 104/EC/2015, National Research University Higher School of Economics.
    16. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    17. Lassibille, Gerard, 1998. "Wage Gaps Between the Public and Private Sectors in Spain," Economics of Education Review, Elsevier, vol. 17(1), pages 83-92, February.
    18. Bozhechkova Alexandra & Trunin Pavel & Knobel Alexander & Firanchuk Alexander & Tsukhlo Sergey & Deryugin Alexander & Lyashok Viktor & Kiyutsevskaya Anna & Arlashkin Igor, 2017. "Monitoring of Russia's Economic Outlook," Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development, Gaidar Institute for Economic Policy, issue 10, pages 1-30, May.
    19. Yann Algan & Pierre Cahuc & André Zylberberg, 2002. "L'emploi public : un remède au chômage ?," Revue économique, Presses de Sciences-Po, vol. 53(3), pages 589-598.
    20. Denis Fougère & Julien Pouget, 2003. "Les déterminants économiques de l'entrée dans la fonction publique," Économie et Statistique, Programme National Persée, vol. 369(1), pages 15-48.

    More about this item

    Keywords

    public private wage gap; public sector; regions; Russia;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2016:i:30:p:105-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.