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Wage Determination in Rural Russia: A Stochastic Frontier Model

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  • Constantin Ogloblin
  • Gregory Brock

Abstract

This article examines wages in rural Russia after the first decade of economic transition using data from a nationally representative household survey. The stochastic frontier analysis reveals that Russia's rural labour markets place high value on human capital. The overall level of rural wages, however, is very low, with the median wage 10% below the official subsistence level. The gender pay gap severely depresses women's wages. A woman with the same skills as a man is paid only 47% of the man's wage. Rural workers who receive income from their personal plots accept significantly lower wages. Private firms pay considerably higher wages than state or collectively owned firms, but account only for one fifth of rural workers.

Suggested Citation

  • Constantin Ogloblin & Gregory Brock, 2006. "Wage Determination in Rural Russia: A Stochastic Frontier Model," Post-Communist Economies, Taylor & Francis Journals, vol. 18(3), pages 315-326.
    • Handle: RePEc:taf:pocoec:v:18:y:2006:i:3:p:315-326
    DOI: 10.1080/14631370600881945
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    References listed on IDEAS

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    2. Tamar Khitarishvili, 2018. "Gender Pay Gaps in the Former Soviet Union: A Review of the Evidence," Economics Working Paper Archive wp_899, Levy Economics Institute.

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