Earnings inequality and informal Employment in Russia

Anna Lukiyanova ()
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Anna Lukiyanova: Centre for Labor Market Studies, Higher School of Economics, Moscow.

HSE Working papers from National Research University Higher School of Economics

Abstract: In this paper I investigate the impact of informality on earnings inequality in Russia using RLMS-HSE data for 2000-2010. I find that during the whole period earnings inequality was substantially higher in the informal sector. Informality increases earnings polarization, thereby widening both tails of the distribution. Changes in the earning distribution of the formal sector were mainly generated by changes in the distribution of hourly earnings. In the informal sector, reduction of inequality occurred via two channels: Differences in hourly rates and working hours both declined. Changes in the structure of informality and conditional wage differentials did not have a significant impact on the overall earnings inequality, with the exception of decline in irregular employment

Keywords: earnings inequality; informal economy; decomposition; recentered influence functions (search for similar items in EconPapers)
JEL-codes: C21 D63 J31 J42 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013
New Economics Papers: this item is included in nep-cis, nep-iue, nep-lab, nep-ltv, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in WP BRP Series: Economics / EC, October 2013, pages 1-30

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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:37/ec/2013

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