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Wage Differential of Graduates of Secondary Specialized and Higher Education in the Russian Labor Market

Student: Orlova Mariia

Supervisor: Peter Meylakhs

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2020

The article considers the return on various levels of education on the Russian labor market. The paper analyzes the gap and the reasons for the gap in the wages of the employed population with secondary specialized education and higher education.   The study was conducted on unbalanced panel data from the Russian Monitoring of the Economic Situation and Health of the National Research University - Higher School of Economics for the period 2010-2018. The Oaxaca-Blinder decomposition method was used. The results of the article showed that respondents with higher education receive, on average, higher wages than respondents with secondary specialized education. The reason for the differences is due to unobserved heterogeneity between groups. Unobservable factors may include the quality of education, the cognitive and non-cognitive characteristics of individuals, as well as the existing discrimination in the Russian labor market. Key words: higher education, secondary vocational education, labor market, wages, human capital theory, Oaxaca-Blinder decomposition. JEL: J31, J24, I24, J71.

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