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|dc.description.abstract||The increase in wage inequality in Russia during its transition process has far exceeded theincrease in wage dispersion observed in other European countries undergoing transition.Russia also has an extremely large incidence of wage arrears. We analyse to what extentwage arrears affect the wage distribution and measures of wage inequality in Russia. Wepresent counterfactual distributions, derived from a variety of different methods, whichsuggest that conventional measures of earnings dispersion would be some 20 to 30 per centlower in the absence of arrears. We then go on to show how wage gaps at various points inthe pay distribution across gender, education, region and industry are influenced by a failureto allow for wage arrears. Using our counterfactual estimates we show, for example, that themedian gender wage gap would be around twenty-five points higher than the actual gap thatwe observe. Similarly, the counterfactual ratio of mean graduate pay to mean pay of thosewith primary education is around twenty points lower than observed. We show that theparameters of the counterfactual wage distributions are very similar to the parameters of theobserved wage distributions of those not in arrears. This means that for those wishing tostudy aspects of wage differentials and inequality in Russia, it may be feasible to use thesubset of those not in arrears and still get close to the true population parameters.||en_US|
|dc.publisher|||aInstitute for the Study of Labor (IZA) |cBonn||en_US|
|dc.relation.ispartofseries|||aIZA Discussion paper series |x410||en_US|
|dc.title||Wage Arrears and the Distribution of Earnings in Russia||en_US|
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