October 8, 2012, 12:30–13:30
Room MS 003
Applied Micro Workshop
Abstract
Using a panel micro data set from the Russian Longitudinal Monitoring Survey for 2000-2009 we analyze the conditional and unconditional wage differentials between the private and the public sectors, and the determinants of the selection between the two sectors. Using various econometric estimates we find a significant 15-30% private sector wage premium. We do not find evidence for higher job security and flexibility in the public sector but we do establish that differences in fringe benefits mostly explain the choice of individuals. Constructing an endogenous sector choice model we find that paid maternity leave and free health care play the most important role in workers' decisions.