Standard and Non-standard Employment in Russia: How Large is the Wage Gap?

The paper examines incidence and earnings of non-standard workers in Russia. We focus on two main types of non-standard arrangements: non-permanent and part-time employment. First we identify determinants of incidence of these types of non-standard employment and find out that such personal characteristics as education level, age and marital status have strong impact on it. Secondly we explore wage differentials between permanent and non-permanent and full-time and part-time employees and demonstrate that the observed wage gap went down substantially when we apply advanced econometric techniques and control for various other factors. The analysis was done with the help of large-scale representative data set Household Survey of Welfare, conducted by Rosstat and World Bank in 2003.