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Wage Flexibility in Russia: Empirical Evidence from Microdata Analysis
[Гибкость Заработных Плат В России: Что Показывают Микроданные?]

Author

Listed:
  • Lyashok, Victor Yu. (Ляшок, Виктор)

    (Russian Presidential Academy of National Economy and Public Administration; National Research University Higher School of Economics; Financial Research Institute)

  • Lopatina, Marina V. (Лопатина, Марина)

    (Russian Presidential Academy of National Economy and Public Administration; National Research University Higher School of Economics)

Abstract

The paper discusses the real wage elasticity to unemployment and GDP in Russia. An approach based on panel microdata about earnings of individuals has been applied. This methodology helps to avoid a number of difficulties that are created when aggregated analytical data on the average wage dynamics are used. The study has indicated some conclusions. Firstly, a review of estimations from other countries based on the same methodology is provided. The results confirm the conclusion about higher wage elasticity to unemployment in Russia than in many developed countries. However, the real wage elasticity to GDP in Russia is comparable with the same elasticity in other countries. Secondly, the use of microdata facilitates the evaluation of real wage flexibility for particular groups of workers and for different types of jobs: in other words, the heterogeneity of wage flexibility. As shown by calculations, wage flexibility is higher for young men living in the city and working in the private or informal sector of the economy. Moreover, it was found that wage flexibility of workers who have changed jobs during the year is higher than that of those who have remained with the same employer. Thus, inter-firm mobility contributes to high wage flexibility in Russia: during economic growth employees, on average, newly start better paid jobs, whereas during crises they switch to low-paid jobs.

Suggested Citation

  • Lyashok, Victor Yu. (Ляшок, Виктор) & Lopatina, Marina V. (Лопатина, Марина), 2019. "Wage Flexibility in Russia: Empirical Evidence from Microdata Analysis [Гибкость Заработных Плат В России: Что Показывают Микроданные?]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 96-119, August.
  • Handle: RePEc:rnp:ecopol:ep1928
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    References listed on IDEAS

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    1. Гимпельсон Владимир Ефимович & Капелюшников Ростислав Исаакович & Шарунина Анна Вячеславовна, 2016. "«Дороги, Которые Мы Выбираем»: Перемещения На Внешнем И Внутреннем Рынках 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. 20(2), pages 201-242.
    2. Абанокова Ксения Руслановна & Локшин Михаил Моисеевич, 2014. "Влияние Эффекта Масштаба В Потреблении Домохозяйств На Бедность В России," 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. 18(4), pages 620-644.
    3. Fei Peng & W. Stanley Siebert, 2008. "Real Wage Cyclicality in Italy," LABOUR, CEIS, vol. 22(4), pages 569-591, December.
    4. E. Vakulenko & E. Gurvich., 2015. "The Relationship of GDP, Unemployment Rate and Employment: In-depth Analysis of Okun’s Law for Russia," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 3.
    5. Vakulenko, E. & Gurvich, E., 2016. "Real Wage Flexibility in Russia: Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 31(3), pages 67-92.
    6. Peng, Fei & Siebert, W. Stanley, 2007. "Real Wage Cyclicality in Germany and the UK: New Results Using Panel Data," IZA Discussion Papers 2688, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    real wage flexibility; real wage cyclicality; labor force mobility; unemployment level; business cycles.;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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