Real Wage Cyclicality in Russia. Evidence from RLMS

Type Working Paper
Title Real Wage Cyclicality in Russia. Evidence from RLMS
Author(s)
Publication (Day/Month/Year) 2013
URL http://webmeets.com/files/papers/res/2014/415/RealwagesRLMS_September13.pdf
Abstract
The paper analyses cyclicality of real wages in Russia and compares it to the results obtained in the literature for other economies. The main source of the data is the ”Russia Longitudinal Monitoring survey, RLMS-HSE”, a panel that contains detailed job related section with information about up to three jobs that individual keeps. The analysis is carried out at the country level as well as at the regional one. Influence of wage arrears on cyclicality of real wages in Russia is investigated. Real wages appear to be highly procyclical (estimated cyclicality coefficient is -0.04) and the results prove to be robust to changes in sample period and estimation technique. The estimated cyclicality coefficient is significantly larger than what is found in the literature for the developed economies such as the USA and the UK. Wage payment delays do not prove to be the driving force for such strong procyclicality

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