Do Higher Levels of Education Raise Earnings in Post-Reform Russia?

Alisher Akhmedjonov

Eastern European Economics, 2011, vol. 49, issue 4, 47-60

Abstract: In this study, using the Russia Longitudinal Monitoring Surveys data set, we investigate whether higher education has any effect on wages in post-reform Russia. In doing so, we test the hypothesis of Brainerd (1998) that returns should further increase in the future as Russia moves from government dominance toward a market democracy. The findings are based on a simple ordinary least squares model and instrumental variable estimation, exploiting institutional changes in the educational system. They suggest that returns grew significantly in 2000-2002. The results are in line with Brainerd's conjecture on the future evolution of returns to human capital in Russia.

Date: 2011
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