Winners and losers in Russia's economic transition

The transition to a market economy has produced a substantial and rapid cha nge in the wage structure in Russia. Household surveys taken before and aft er the transition indicate that overall wage inequality nearly doubled from 1991 to 1994 and has reached a level higher than that in the United States . Returns to both measured skills (education, occupation) and unmeasured sk ills within groups have increased considerably. Skill premiums across exper ience groups, however, have become more compressed and relative wages of ol der workers have declined. In addition, female wages have declined relative to male wages across all percentiles of the wage distribution. (JEL J31, P 24).