I use Russian panel data for 1994-2013 to estimate the earnings function that includes age, period and cohort. To eliminate the linear dependence between these variables, I substitute period for the real wage index in the earnings equation. The earnings function is estimated by the Heckman selection estimator separately for males and females. The estimation reveals strong between-cohort differences in human capital, especially for Russian men. The three sources of the between-cohort differences in human capital are detected. The major one is due to the human capital devaluation resulted from the transition of Russia to the market economy in the 1990’s. This source is responsible for the 50% difference between the incomes of Russian men born in 1940-1949 and the salary of men born in 1989. Other two sources of between-cohort differences in earnings are, first, distinct conditions at the moment when workers entered the labor market, and, second, between-cohort differences in return to education.
Translated title of the contributionBETWEEN-COHORT DIFFERENCES IN HUMAN CAPITAL OF RUSSIAN WORKERS
Original languageChinese
Title of host publication俄罗斯经济发展研究(2018-2019) 关雪凌 [俄] 维克托 梁赞诺夫 / 主编
EditorsСюэлин Гуань, Виктор Тимофеевич Рязанов
Place of PublicationПекин
PublisherСиньхуа
Pages101-127
ISBN (Print)9787516645383
StatePublished - 2019

    Scopus subject areas

  • Economics and Econometrics

ID: 37462006