Health and Wages in Russia: How Are They Related? (The Case of Russia Longitudinal Monitoring Survey)

M. A. Kaneva () and V. D. Moiseenko
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M. A. Kaneva: Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences
V. D. Moiseenko: National Research University Higher School of Economics

Regional Research of Russia, 2025, vol. 15, issue 3, 511-525

Abstract: Abstract The study aims to assess the impact of health on the hourly wages of men and women using the Russian Longitudinal Monitoring Survey data for 2015–2022 period. The analysis of the relationship between health and wages accounts for the endogeneity and the selection effects. The approach introduces the new multiple morbidity variables. We employ the Heckman selection and 2SLS-IV models to fit a Mincer equation separately for men and women. Our findings show that the wage of men in poor health is 21% lower than that of men reporting average health, while the wage for the respondents in good health is 5% higher. For women, the wage cut for poor health equals to –16% and the coefficient for the good health is not statistically significant. Multimorbidity has a considerable impact on men’s wages, reaching an 8% cut in wages for men reporting four chronic conditions. In line with the previous results for the Russian labor market, we confirm that the absolute value of the 'fine' for poor health was greater than the ‘bonus’ for good health. We find that women are punished for diagnosed chronic conditions harder than men via greater reduction in hourly wages. However, these results need to be interpreted with caution due to the low number of individuals suffering from particular diseases. Our research emphasizes the importance of the effect of health on productivity. Regional and national information campaigns and free checkups should sustain and improve health capital to increase productivity. Employers should support healthy behaviors through various measures, including employer-sponsored healthcare plans and the introduction of small monetary rewards for health-maintenance activities.

Keywords: Heckman model; instrumental variables; multimorbidity; Russian labor market; selection; self-reported health (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1134/S2079970524600835

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