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Working paper

Динамика и структура неравенства по заработной плате (1998— 2005 гг.)

The paper documents changes in the structure of earnings and earnings inequality in Russia during the period of economic growth. The study is based ob the RLMS data for 1998—2005. The results indicate an overall fall in earnings inequality by about 10%. The decline in inequality occurred due to the faster rise of wages in the lower tail of the distribution. We find some evidence of falling returns to schooling in the most recent years: college and university premiums have slightly gone down. Contrary to the expectations returns to experience do not show any signs of recovery after initial collapse in the early phase of the transition to a market economy. A regression-based decomposition reveals that 80% of the decrease in earnings inequality is explained by declining within-group inequality and falling inter-regional wage differentials. Employee’s residence settlement type acts to widen earnings inequality.