The Russian-Ukrainian earnings divide1

Ethnic differences are often considered to be powerful sources of diverse economic behaviour. In this article, we investigate to what extent ethnicity affects Ukrainian labour market outcomes. Using microdata from the Ukrainian Longitudinal Monitoring Survey and the Oaxaca–Blinder decomposition of earnings, we find a persistent and increasing labour market divide between ethnic Russians and Ukrainians throughout Ukraine's transition era. We establish that language, rather than nationality, is the key factor behind this ethnic premium favouring Russians. Our findings further document that this premium is larger amongst males than females. JEL classifications: J15, J70, J82.

2006

The Russian-Ukrainian Earnings Divide Ethnic differences are often considered to be powerful sources of diverse economic behavior. In this paper, we investigate whether and how ethnicity affects Ukrainian labor market outcomes. Using micro data from the Ukrainian Longitudinal Monitoring Survey (ULMS) and Oaxaca-Blinder decomposition of earnings, we find a persistent and rising labor market divide between ethnic Russians and Ukrainians throughout Ukraine’s transition era. We establish that language rather than nationality is the key factor behind this ethnic premium favoring Russians. Our findings further document that this premium is larger among males than among females. JEL Classification: J15, J70, J82

SSRN Electronic Journal, 2015

Using nationally representative data (RMLS-NRU HSE) from 2004-2012, this paper examines sectoral segregation between immigrant (persons with an immigration background) and native workers and its impact on the earning differential in Russia. This is the first micro-level study in Russia about sectoral segregation and the earning gap between natives and immigrants under its influence. In this study we analyze the determinants of the choice of sector, estimate earning differences between natives and immigrants, define the Duncan index of dissimilarity and measure the impact of sectoral segregation on the earning differential between natives and immigrants using Oaxaca-Blinder decomposition. Our results show that sectoral segregation in the Russian labor market gradually increased from 2004 to 2012. We find there are significant earning differences between immigrants and natives. Most of this difference cannot be explained by productivity-related differences between the two groups. This implies that immigrants can experience labor market discrimination. After partly assessing the self-selection of worker's using the extended decomposition method our empirical results demonstrate that the sectoral segregation (or voluntary distribution across sectors) plays a considerable role in the earning differential between natives and migrants in Russia.

2013

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Journal of Comparative Economics, 2006

Institutions, Markets and Men's and Women's Wage Inequality: Evidence from Ukraine * Ukraine, the second largest country in the former Soviet bloc, is facing the challenge of rallying popular support for major structural reforms. As in most developing economies, the "Orange Revolution" government's success will depend on its ability to keep income distribution within an acceptable range. This paper is the first to make use of recent methodological developments in Lemieux's (2002) decomposition method to advance our understanding of the determinants of wage inequality in developing and transition economies. With an eye toward future policy, we apply this approach to the first large longitudinal micro data set for Ukraine-the Ukrainian Longitudinal Monitoring Survey (ULMS)-to determine the extent to which the introduction of markets and new institutions affected men's and women's wage inequality between 1986 and 2003. We find that wage inequality rises substantially for both men and women. Applying the Lemieux method, we show that market forces drive the increase in inequality through changes in wage premiums, but the changes in the composition of the labor force (selection) generally contribute to a reduction in wage inequality; the exception is that changes in women's labor composition contribute to an increase in inequality in the top half of their wage distribution. Finally, changes in unobservable characteristics work toward increasing inequality for both men and women. The institution of the minimum wage plays an important role in lowering the growth in inequality, more for women than for men. Going forward, if the government wants to ameliorate the effects of market forces on wage inequality, it should recognize the importance of maintaining the value of, and compliance with, the minimum wage.

IZA Journal of Labor & Development, 2012

The paper presents the Ukrainian Longitudinal Monitoring Survey (ULMS), which is one of the most widely used household and labor force surveys in Eastern Europe. It is based on a statistically representative sample of the Ukrainian population aged between 15 and 72 years, comprising about 4,000 households and 8,500 individuals. The paper introduces the essential aspects of the ULMS, including sampling, survey instruments and content as well as discusses the current available data. Key details of the forthcoming 2012 wave of the survey are outlined. The article also provides an overview of major studies accomplished with the help of the ULMS data. The review suggests the usefulness and high potential of the survey in tackling important questions in labor economics and related fields.

2005

The gender earnings differential in Russia 2000-02 is examined using a nationally representative household survey. Adjusted for hours worked, women’s monthly earnings are 62% of men’s, and women’s long-run effective wage is 69% of men’s. While women’s higher human capital endowments reduce the gender earnings differential, job segregation by gender accounts for about three quarters of it. Wage arrears compress earnings actually received and slightly reduce the gender pay gap. The unexplained part of the differential is largely attributed to discrimination against women.

The Informal Economy in Global Perspective, 2017

Following almost 25 years of independence, informal employment remains one of the main challenges for Ukraine during its economic transformation period. The transition in Ukraine went through a two-step process, experiencing a severe output decline

This paper analyses the changes in ethnic self-identification of the population of Ukraine from the last (January 1989) Soviet census to the first (December 2001) Ukrainian census. It begins with a comparison of the census data and describes the remarkable changes observed. Given the incomplete nature of published data on international migrations and their differentiation by ethnic groups in the inter-census period, the paper applies a method to fill in the gaps and calculate net migration balances for each ethnic group. Also, since no data is available on the net reproductive rates for separate ethnic groups in Ukraine, it sets out a method to estimate net reproduction rates for Ukrainians and Russians in the inter-census period. Using these methods, it establishes that differences in net migration on the one hand and the differences in net reproduction on the other contributed 11.1 and 4.4 percent of the growth in the share of Ukrainians and 6.8 and 5.2 percent in the sizeable decline in the share of Russians. The remaining lion's share is a shift in identity among members of ethnically mixed (mainly Russian-Ukrainian) families. Mothers of ethnically mixed families, identifying the ethnicity of their newly born, contributed 11.4 percent to the Ukrainian gain and 9.2 percent to the Russian loss. The remaining 73.1 percent of the Ukrainian gain and 78.8 percent of Russian loss resulted from lifetime identity shift from Russian to Ukrainian, the most likely candidates being members of Russian-Ukrainian families. INTRODUCTION The first population census of Ukraine reveals a major ethnic shift in the population of that newly independent country. According to the State Statistics Committee of Ukraine, despite a decline in the population as a whole, the number of people who declared their nationality as Ukrainian actually increased since the last Soviet census. 1 While their numbers increased from 37.4 to 37.5 million, or by 122.6 thousand, the number of those who declared their

2007

The paper analyzes the incidence, the severity and the determinants of household poverty in Ukraine during transition using two comparable surveys from 1996 and 2004. We measure poverty using income and consumption and contrast the effects of various poverty lines. Poverty in both periods follows some of the determinants commonly identified in the literature, including greater poverty among households with children and with less education. We also identify specific features of poverty in transition, including the relatively low importance of unemployment and the existence of poverty even among households with employment. Poverty determinants change over time in line with the experience of transition and restructuring. JEL code: P20, I32, J20, O15