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Working in the Budgetary Sector in Russia: Lucky Choice or Bad Fortune?

русская версия

Опубликовано на портале: 31-12-2010
Экономический журнал ВШЭ. 2006.  Т. 10. № 4. С. 557-589. 
With the data from the Russian Longitudinal Monitoring Survey (RLMS) for
2000–2004 the authors estimate the probabilities of employment in the public sector
for various demographic, occupational, and territorial population subgroups. The paper
also provides wage gap estimates for all these groups applying switching regression
and fixed effects model that correct for endogeneity of the sector selection. As it
is shown, the chances to be employed in the public sector are higher for rural residents
and those who live in less developed regions. There is significant cross-group
variation in the wage gap. Decomposition of the wage gap proves that centralized
bureaucratic wage-setting pulls down wages in the public sector while market forces
work to compensate for the underpay.