/pdf/comparative-analysis-of-interregional-and-intersectoral-30hgr0k7my.pdf

Comparative Analysis of Interregional and Intersectoral Mobility in Russia

(ProQuest: ... denotes formulae omitted.)IntroductionThe impact of location on labour market outcomes is a relatively modern research problem of current interest. Evidence from Europe and the USA showed that the location of labour markets within one country should be taken into account in carrying out research into local labour market outcomes and when designing economic policy (David et al. 2010, Moretti 2011, Manning and Petrongolo 2011, Combes et al. 2012, Bratti and Leombruni 2014, Mocanu and Serban 2015). In general, the development of economic activity is highly dependent on geographical position (Fujita et al. 1999). This is especially true for the large countries, which occupy large territories. The geography of the Russian Federation is such that climate, natural resources and other territorial characteristics vary significantly among the regions and determine the structure and development of the regional economy (Moe and Kryukov 2010, Zubarevich and Safronov 2011, Tatarkin and Loginov 2015). The regional economy is the basis for regional market outcomes, so we can assume that the location of the labour market affects employment, unemployment and wage distribution in the particular region. The aim of this paper is to investigate what peculiarities the location of the High North regions of Russia creates in employment in these areas.There are no empirical studies on employment in the High North of Russia so far, but a number of works highlight the specific features of the labour markets of the northern territories of Russia or suggest their existence. We can distinguish the following main areas: theoretical models and empirical studies that describe the equilibrium level of the regional labour markets and the reasons for migration of employees between regions (Rosen 1979, Roback 1982, Blanchard and Katz 1992, Moretti 2011). Also, there are studies that identify certain areas of the country as the objects of analysis concerning certain characteristics (e.g., one -company towns): Berger et al. 2003, Bignebat 2006, World Bank 2010, Ammermueller et al. 2007, Caponi 2008, Commander et al. 2011, Giltman 2014, Semerikova and Demidova 2015. The body of literature that contains the results of the research into the inter-regional differences in wages, including the compensative differentials, comprises the works of: Coelho and Ghali 1971, Greenwood et al. 1991, Bignebat 2003, Lukiyanova and Oshchepkov 2007, Oshchepkov 2010, Lukiyanova 2011, Oshchepkov 2015. A number of studies were devoted to the estimation of the impact of labour market institutions on labour market outcomes in Russian regions: Gimpelson et al. 2009, Mironenko 2012, Lehmann and Zaiceva 2013, Gimpelson and Kapeliushnikov 2014, Muravyev and Oshchepkov 2016.The High North of Russia is traditionally associated with an unfavourable climate, remoteness from the European part of the country and high wages, which should compensate for the uncomfortable living conditions. The High North regions of Russia occupy a huge area of the country (Fig. 1) and they can be characterized by a 7% share of the population of Russia and about 16% of the Gross Domestic Product (Tatarkin and Loginov 2015). Most areas of the HighNorth have a strictly oriented economic specialization. Situated here are about 80% of the explored natural resources of Russia, of more than 60 types (Tatarkin and Loginov 2015). In value terms, the High North regions of Russia produce more than 50% of the product of the extractive industry of Russia. The High North regions of Russia are statutory defined. There are regions that are totally and regions that are partly recognized as the High North. This definition is necessary for the application of the system of benefits for employees in these areas. The mentioned system has remained in force since 1960.One of the most important issues for the state regulation of employment conditions in the High North are the additional tools which were designed in order to increase wages in the North compared with the other regions of the country. …

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Does location affect employment? evidence from the high north of russia

The article presents an analysis of the differentiation of wages from the position of identifying the influence of the territorial factor. The study of territorial wages remains relevant for the Russian Federation; features of the regions, the development of certain types of activities in combination with regional features continue to affect differences in earnings. The purpose of the article is to identify the territorial features of wage differentiation. Aggregated data of official statistics and microdata of the Selective observation of population incomes and participation in social programs were used as an information base. The analysis of the data of regional statistics of wages, leaders and outsiders, the level of variation in wages within the federal districts. Due to regional price differences, the analysis takes into account differences in changes in prices and the purchasing power of wages. The emphasis is placed on the possibilities of using Mincer type wage models for individual regions and their comparative analysis based on empirical data. Regression models for leader entities and outsider entities, federal districts and the Russian Federation as a whole have been constructed. Based on the results of the analysis, conclusions are drawn about the sustainability of territorial wage differentiation in Russia. The main differences are manifested in the maximum values of the average wage by subjects, while the minimum values are almost at the same level. When purchasing power is taken into account with the help of a fixed set of consumer goods and services, differences in the remuneration of subjects of leadership and subjects of outsiders are reduced from four to three times. Simulation of the logarithm of wages for all federal districts and the Russian Federation as a whole confirmed a statistically significant influence on factors such as age, level of education, gender of a worker, type of settlement, and membership in a particular socio-professional group. A noticeable reduction in the return on education in federal districts with a low level of average wages was revealed; in such conditions, the employee’s membership in the group of managers becomes the dominant earnings. Attention is focused on increasing cash incomes of the population and wages in regions with special living conditions as a factor in overcoming the outflow of the population from Siberia and the Far East. Further areas of the study of territorial wage differentiation can be expanded by using panel data for each region in the analysis in order to study the dependencies in space and time.

Differentiation of wages in the russian federation: territorial features

In this chapter, we provide evidence on compensating differentials in the labor market from the largest transition economy, Russia. Using the NOBUS micro-data and a methodology based on the estimation of the wage equation augmented by aggregate regional characteristics, we show that wage differentials across Russian regions have a compensative nature. Russian workers receive wage compensations for living in regions with a higher price level and worse nonpecuniary characteristics, such as a relatively low life expectancy, a high level of air pollution, poor medical services, a colder climate, and a higher unemployment level. These compensations are not associated with the existing government system of compensating wage coefficients. After adjusting for regional amenities and disamenities, regional wages become positively correlated with interregional migration flows. According to our estimates, wage compensations along with differences in employment composition are able to account for about three-fourths of the observed variation in wages across Russian regions.

Compensating Wage Differentials Across Russian Regions

This paper examines the evolution of overall wage inequality in Russia from the early 1990s to the present. We first document the stylized facts and show that inequality in labor earnings increased dramatically early in the transition period and then, albeit more moderately, after the 1998 financial crisis. The trend reversed in the early 2000s wage dispersion has been declining thereafter. Changes in wage inequality were largely driven by the lower end of the wage distribution. The paper reviews and provides a critical discussion of research on wage inequality and wage differentials in Russia and suggests areas where empirical research may provide new insight into the character and causes of recent changes in wage inequality. A common view is that the rise of returns to schooling to market levels and the reallocation of workers from the public sector to the private sector accounts for the bulk of increased wage inequality during transition. However, our analysis demonstrates that these factors explain a relatively small proportion of changes in the wage distribution. We find that wage differences across and within regions and industries do a better job of capturing the dynamics of wage inequality over last two decades. These patterns can be potentially explained by expanding the existing research to other areas including the effects of shocks, organizational changes, minimum wages, rent-sharing, incentive pay structures, wage bargaining regimes.

Wage Inequality in Russian Economic Transition (1991–2008): Stylized Facts and Explanations

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Wage Inequality in Russian Economic Transition (1991–2008): Stylized Facts and Explanations