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Labor supply elasticity in Russia

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  • E. Klepikova

Abstract

The paper estimates wage elasticity of labor supply in Russia - both intensive and extensive margins. Empirical research is based on the Russia Longitudinal Monitoring Survey - Higher School of Economics data for the period from 2004 to 2014. The study uses an adaptation of the Heckman selection model, estimation proceeds in four stages. It is shown that elasticity of the decision regarding hours worked is insignificant for all demographic groups with the exception of married women, for whom it is significantly negative. The elasticity regarding the decision to participate is positive, but quite low for people aged 25-54, and is much higher for those in the early retirement age. The possible application of the obtained estimates is demonstrated by measuring potential effect of personal income tax and pension system reforms on the labor supply.

Suggested Citation

  • E. Klepikova, 2016. "Labor supply elasticity in Russia," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 9.
  • Handle: RePEc:nos:voprec:y:2016:id:232
    DOI: 10.32609/0042-8736-2016-9-111-128
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