Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39596
Authors: 
Hazans, Mihails
Year of Publication: 
2003
Series/Report no.: 
ZEI working paper B 02-2003
Abstract: 
To what extent does commuting reduce urban – rural and regional wage disparities? This question is addressed by estimating two sets of earnings functions (based on 2000 LFS data for Estonia, Latvia and Lithuania): with location variables (like capital city, rural etc.) measured at the workplace and at the place of residence. The main finding is that in Estonia and Latvia commuting has significantly narrowed the ceteris paribus wage gap between capital city and rural areas, as well as between capital and other cities. In Lithuania only residents of urban areas in the capital county manage to catch up significantly with the capital, while overall urban-rural gap remains almost unchanged. So different outcomes are explained by country-specific skills composition of rural – urban commuting flows and wage discrimination against rural residents in Lithuanian urban markets. Individual gains to rural – urban or inter-city commuting (both with and without correcting to selectivity) are uniformly big in Latvia but on average negligible in Lithuanian urban areas.
Subjects: 
commuting
earnings functions
treatment effects model
wage disparities
Baltic States
ethnic minority
JEL: 
J31
J61
R23
D63
C31
C35
Document Type: 
Working Paper

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