In the section | Articles |
Title of the article | Age Differentiation in Wages in the Russian Labor Market: Identification of the Causes |
Pages | 103-132 |
Author 1 |
Elena Vitalyevna Vasilyeva Candidate of Sciences (Economics), Senior Research Fellow, Head of the Center for Economic Security Institute of Economics UB RAS 29 Moskovskaya St., Yekaterinburg, 620014, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-0446-1555 |
Author 2 |
Alexander Nikolaevich Tyrsin Doctor of Sciences (Technical Sciences), Professor, Leading Research Fellow Institute of Economics UB RAS 29 Moskovskaya St., Yekaterinburg, 620014, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-2660-1221 |
Abstract | The article examines the reasons for the significant age differentiation in wages that has developed in the Russian labor market. Based on the literature review, two hypotheses of the study were formed, reflecting the factors of wage changes with respect to age. The first hypothesis is that the wages of older workers are determined by age discrimination. According to the second hypothesis, the wages of older workers depend on their accumulated human capital (education, skills, and health). To test the two hypotheses of the study we carry out a multidimensional statistical analysis. It included the construction of regression models, performing discriminant analysis, and testing statistical hypotheses of data uniformity. We use the data from the Russia Longitudinal Monitoring Survey of HSE (RLMS-HSE) covering the years from 2000 to 2019. The data from the monitoring survey have been analyzed not only with respect to age, but gender as well. The results of the study confirmed the first hypothesis for men of pre-retirement and retirement age, as well as women of retirement age. The second hypothesis that the depreciation of human capital with age affects the remuneration of older workers has been partially confirmed. For the older generation of both sexes, a significant factor of wages is health, for men it is also the presence of a completed professional education. Continual education has a positive effect on average earnings, but only for women. Computer skills increases all workers’ wages except men older than 60. We did not find out any significant effect of human capital accumulation on wages for workers of pre-retirement and retirement age |
Code | 331.2+338.2 |
JEL | J14, J31, J71 |
DOI | https://dx.doi.org/10.14530/se.2021.3.103-132 |
Keywords | wages ♦ older workers ♦ discrimination ♦ ageism ♦ human capital ♦ differentiation ♦ Russia |
Download | |
For citation | Vasilyeva E.V., Tyrsin A.N. Age Differentiation in Wages in the Russian Labor Market: Identification of the Causes. Prostranstvennaya Ekonomika = Spatial Economics, 2021, vol. 17, no. 3, pp. 103–132. https://dx.doi.org/10.14530/se.2021.3.103-132 (In Russian) |
References | 1. Aivazyan S.A. Methods of Econometrics. Moscow, 2010, 512 p. (In Russian). 2. Arrow K.J. The Theory of Discrimination. Discrimination in Labor Markets. Edited by O. Ashenfelter, A. Rees. Princeton University Press, 1973, pp. 3–33. 3. Becker G.S. Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press, 2009, 412 p. 4. Bersin J., Chamorro-Premuzic T. The Case for Hiring Older Workers. Harvard Business Review, 2019, September 26. Available at: 5. Biggs S., Carstensen L., Hogan P. Social Capital, Lifelong Learning and Social Innovation. Global Population Ageing: Peril or Promise? World Economic Forum. Edited by J.L. Beard, S. Biggs, D.E. Bloom, L.P. Fried, A. Kalache, S.J. Olshansky. Geneva: World Economic Forum, 2012, pp. 39–41. 6. Chernykh N.A., Tarasova A.N., Syrchin A.E. Persons of Pre-Retirement Age in the Labour Market: Employment Problems and Support Measures. Ekonomika Regiona = Economy of Region, 2020, vol. 16, no. 4, pp. 1178–1192. 7. Chichkanov V.P., Chistova E.V., Tyrsin A.N., Stepanov A.N. Consequences of Raising the Retirement Age for the Labor Market in the Regions of Russia. Montenegrin Journal of Economics, 2019, vol. 15, no. 1, pp. 31–45. 8. Chistova E.V. Employment of Persons of Retirement Age: Supply and Demand in the Russian Labor Market. Ekonomika i Biznes: Teoriya i Praktika = Economy and Business: Theory and Practice, 2019, no. 10-2, pp. 155–162. 9. Coudin G., Alexopoulos T. Help me! I’m Old!’ How Negative Aging Stereotypes Create Dependency in Older Adults. Aging and Mental Health, 2010, vol. 14, issue 5, pp. 516–523. 10. Crimmins E.M., Beltran-Sanchez H. Mortality and Morbidity Trends: Is There Compression of Morbidity? Journal of Gerontology: Social Sciences, 2011, vol. 66B, issue 1, pp. 75–86. 11. Danielyan V.A., Polterovich V.M. The Adventures of Pension Reform in Russia: Where are the Mistakes? Zhurnal Novoy Ekonomicheskoy Assotsiatsii = Journal of the New Economic Association, 2019, no. 2 (42), pp. 186–194. (In Russian). 12. Deary I.J., Starr J.M., MacLennan W.J. Is Age Kinder to the Initially More Able? Differential Ageing of a Verbal Ability in the Healthy Old People in Edinburgh Study. Intelligence, 1998, vol. 26, issue 4, pp. 357–375. 13. Egdell V., Maclean G., Raeside R., Chen T. Age Management in the Workplace: Manager and Older Worker Accounts of Policy and Practice. Ageing & Society, 2020, vol. 40, issue 4, pp. 784– 804. 14. Gimpelson V.Е. Age and Wage: Stylized Facts and Russian Evidence. Ekonomicheskiy Zhurnal VSHE = HSE Economic Journal, 2019, vol. 23, no. 2, pp. 185–237. 15. Gimpelson V.Е. Age, Productivity, Salary: Preprint WP3/2018/07/. Moscow, 2018, 66 с. (In Russian). 16. Golub S.A., Langer E.J. Challenging Assumptions about Adult Development: Implications for the Health of Older Adults. Handbook of Health Psychology and Aging. Edited by C.M. Aldwin, C.L. Park, A. Spiro III. New York; London: The Guildford Press, 2007, pp. 9–29. 17. Gries T., Jungblut S., Krieger T., Meyer H. Economic Retirement Age and Lifelong Learning: A Theoretical Model with Heterogeneous Labor, Biased Technical Change and International Sourcing. German Economic Review, 2019, vol. 20, issue 2, pp. 129–170. 18. Grigoreva I.A., Sizova I.L. Aging Trajectories of Women in Modern Russia. Mir Rossii = Universe of Russia, 2018, no. 27, no. 2, pp. 109–135. 19. Hertel G., Zacher H. Managing the Aging Workforce. The SAGE Handbook of Industrial, Work, & Organization Psychology. Edited by D.S. Ones, N. Anderson, C. Viswesvaran, H.K. Sinangil. SAGE Publications Ltd, 2018, pp. 396–428. 20. Hess T.M., Hinson J.T. Age-Related Variation in the Influences of Aging Stereotypes on Memory in Adulthood. Psychology and Aging, 2006, vol. 21, pp. 621–625. 21. Ivankina L., Ivanova V. Social Well-Being of Elderly People (Based on the Survey Results). SHS Web of Conferences, 2016, vol. 28, pp. 01046. 22. Karpinska K., Henkens K., Schippers J. Hiring Retirees: Impact of Age Norms and Stereotypes. Journal of Managerial Psychology, 2013, vol. 28, no. 7/8, pp. 886–906. 23. Khotkina Z.A. ‘Normal Labour Potential’ and Age Discrimination. Narodonaselenie = Population, 2013, no. 3 (61), pp. 27–37. (In Russian). 24. Klein R.M., Dilchert S., Ones D.S., Dages K.D. Cognitive Predictors and Age-Based Adverse Impact Among Business Executives. Journal of Applied Psychology, 2015, vol. 100, issue 5, pp. 1497–1510. 25. Klepikova E.A. Age Discrimination in Hiring: an Experimental Study. Ekonomicheskaya Politika = Economic Policy, 2019, vol. 14, no. 2, pp. 64–89. 26. Klepikova E.A., Kolosnitsyna M.G. Ageism in the Russian Labor Market: Wage Discrimination. Rossyyskiy Zhurnal Menedzhmenta = Russian Management Journal, 2017, vol. 15, no. 1, pp. 69–88. 27. Kotova N.N., Cherepanova A.E. The Problems of Modern Labor Market (Development Trends). Vestnik YuUrGU. Seriya ‘Ekonomika i Menedzhment’ = Bulletin of SUSU. Series ‘Economics and Management’, 2017, vol. 11, no. 4, pp. 38–45. 28. Kyui N.Е. Return to Education with Endogenous Occupational Choice: Empirical Analysis for the Russian Federation. Ekonomicheskiy Zhurnal VSHE = HSE Economic Journal, 2008, vol. 12, no. 3, pp. 365–399. (In Russian). 29. Lain D., Airey L., Loretto W., Vickerstaff S. Understanding Older Worker Precarity: The Intersecting Domains of Jobs, Households and the Welfare State. Ageing & Society, 2019, vol. 39, issue 10, pp. 2219–2241. 30. Lemeshko B.Yu. Criteria for Testing Hypotheses about Homogeneity. Application Guide. Novosibirsk, 2016, 248 p. (In Russian). 31. Levy B. Mind Matters: Cognitive and Physical Effects of Aging Self-Stereotypes. The Journals of Gerontology, 2003, vol. 58, issue 4, pp. 203–211. 32. Levy B., Ferrucci L., Zonderman A.B., Slade M.D., Troncoso J., Resnick S.M. A Culture-Brain Link: Negative Age Stereotypes Predict Alzheimer’s Disease Biomarkers. Psychology and Aging, 2016, vol. 31, issue 1, pp. 82–88. 33. Lossbroek J., Lancee B., Van Der Lippe T., Schippers J. Understanding Old-Age Adaptation Policies in Europe: The Influence of Profit, Principles and Pressures. Ageing & Society, 2019, vol. 39, issue 5, pp. 924–950. 34. Lyashok V.Yu. Senior Employment: Potential for Growth. Ekonomicheskoe Razvitie Rossii = Russian Economic Developments, 2018, vol. 25, no. 10, p. 68–70. (In Russian). 35. Lyashok V.Yu., Roshchin S.Yu. Effect of Health on Labor Supply of Elderly. Prikladnaya Ekonometrika = Applied Econometrics, 2015, no. 4 (40), pp. 6–27. (In Russian). 36. Maertens J.A., Putter S.E., Chen P.Y., Diehl M., Huang Y.-H. Physical Capabilities and Occupational Health of Older Workers. The Oxford Handbook of Work and Aging. Edited by J.W. Hedge, W.C. Borman. New York: Oxford University Press, 2012, pp. 215–235. 37. Mincer J. Schooling, Experience, and Earnings. NBER, 1974, 154 p. 38. Muller A., De Lange A., Weigl M., Van der Heijden B., Ackermans J., Wilkenloh J. Task Performance Among Employees Above Age 65: The Role of Cognitive Functioning and Job Demand-Control. Work, Aging and Retirement, 2015, vol. 1, issue 3, pp. 296–308. 39. Ng T.W.H., Feldman D.C. Evaluating Six Common Stereotypes about Older Workers with Meta-Analytical Data. Personnel Psychology, 2012, vol. 65, issue 4, pp. 821–858. 40. Oshchepkov A.Y. Gender Wage Gap in Russia. Ekonomicheskiy Zhurnal VSHE = HSE Economic Journal, 2006, vol. 10, no. 4, pp. 590–619. (In Russian). 41. Oshchepkov A.Y. Return to Higher Education in Russian Regions. Ekonomicheskiy Zhurnal VSHE = HSE Economic Journal, 2010, vol. 14, no. 4, pp. 468–491. (In Russian). 42. Rimashevskaya N.M., Dobrokhleb V.G. Older Generation as a Resource for Modernization of Russia. Narodonaselenie = Population, 2013, no. 3 (61), pp. 20–26. (In Russian). 43. Rothermund K. Effects of Age Stereotypes on Self-Views and Adaptation. The Adaptive Self. Personal Continuity and Intentional Self-Development. Edited by W. Greve, K. Rothermund, D. Wentura. Gottingen: Hogrefe & Huber Publishers, 2005, pp. 223–242. 44. Rumyantseva Е.S. State Policy and the Problem of Activization of Elderly Generation. Gosudarstvennaia Sluzhba = Public Administration, 2013, no. 1, pp. 49–51. (In Russian). 45. Russian Employee: Education, Profession, Qualification. Edited by V.Е. Gimpelson, R.I. Kapelyushnikov. Moscow, 2011, 576 p. (In Russian). 46. Russian Labor Market: Trends, Institutions, Structural Changes. Edited by V.Е. Gimpelson, R.I. Kapelyushnikov, S.Yu. Roshchin. Moscow: National Research University Higher School of Economics, 2017, 148 p. (In Russian). 47. Russia Longitudinal Monitoring Survey of HSE. Available at: 48. Salthouse T. Consequences of Age-Related Cognitive Declines. Annual Review of Psychology, 2012, vol. 63, p. 201–226. 49. Skirbekk V. Age and Productivity Capacity: Descriptions, Causes and Policy Options. Ageing Horizons, 2008, no. 8, pp. 4–12. 50. Skopek J.,Triventi M., Kulic N., McMullin P., Buchholz S., Blossfeld H. Differentiation in Secondary Education and Social Inequality in Educational Opportunities. Results from a Large-Scale International Comparison. Zhurnal Sotciologii i Sotcialnoy Antropologii = The Journal of Sociology and Social Anthropology, 2016, vol. 19, no. 5, pp. 98–126. (In Russian). 51. Soshnikova L.A., Tamashevich V.N., Uebe G., Shefer M. Multidimensional Statistical Analysis in Economics. Moscow, 1999, 598 p. (In Russian). 52. Tagarov B. Zh. Economic Causes of Ageism in the Labor Market. EKO = ECO Journal, 2019, no. 8, pp. 66–82. 53. Van Ours J.C., Stoeldraijer L. Age, Wage and Productivity in Dutch Manufacturing. De Economist, 2011, vol. 159, pp. 113–137. 54. Vasilieva E.V., Tyrsin A.N. Impact of Seniors’ Employment on Pension Provision. Professionalnoe Obrazovanie i Rynok Truda [Vocational Education and Labor Market], 2020, no. 4, pp. 82–89. 55. Vishnevskaya N.T. Older Workers in the OECD Labour Market. Ekonomicheskiy Zhurnal VSHE = HSE Economic Journal, 2017, vol. 21, no. 4, pp. 680–701. (In Russian). 56. Wages in Russia: Evolution and Differentiation. Edited by V.Е. Gimpelson, R.I. Kapelyushnikov. Moscow, 2008, 575 p. (In Russian). |
Financing | This article has been written according to the research plan of the Institute of Economics of the Ural Branch of the Russian Academy of Sciences |
Submitted | 09.08.2021 |
Approved after reviewing | 20.08.2021 |
Accepted for publication | 25.08.2021 |
Available online | 30.09.2021 |