The Earnings of Soviet Workers: Evidence from the Soviet Interview Project Author(s): Paul R. Gregory and Janet E. Kohlhase Source: The Review of Economics and Statistics, Vol. 70, No. 1 (Feb., 1988), pp. 23-35 Published by: The MIT Press Stable URL: http://www.jstor.org/stable/1928147 Accessed: 02/07/2010 15:53 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://dv1litvip.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=mitpress. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The MIT Press is collaborating with JSTOR to digitize, preserve and extend access to The Review of Economics and Statistics. http://dv1litvip.jstor.org THE EARNINGS OF SOVIET WORKERS: EVIDENCE FROM THE SOVIET INTERVIEW PROJECT Paul R. Gregoryand JanetE. Kohlhase* Abstract-Micro data gatheredby theSovietInterviewProject provide one of the firstopportunities forWesternresearchers to investigatethe determinants of Soviet earnings.The data show that Soviet labor marketsoperate in many respects like U.S. labor markets,yet institutionaldifferences remain. The most strikinginstitutional impactis that Soviet workers are rewardedand penalized forpoliticalbehaviorexternalto the firm.As in theUnited States,educationand experienceare rewarded; men earn more than women. However,the Soviet patternof returnsto educationis different, returnsto experience are lower and occupationalsegregationof womenis less important. forthe Soviet InterCenter conductedinterviews view Project (SIP) with2,793 formerSoviet citizens who immigratedto the United States betweenJanuary1, 1979 and April30, 1982. This paper exploitstheuniqueSIP data to study An augmentedhuman Soviet wage differentials. capital model assumes an active Soviet labor marketin which workerscan manipulatemoney rewardsby acquiringhumancapital,selectingjob and by transmitting loyaltysignals. characteristics, L. Introduction Microdata on privilegesand politicalactivitiesare is notpossibleto studySovietwagedifferen-combined with conventionaleconomic data to estimate a reduced formearningsequation. We tials using officialSovietdata. Sovietstatistical confirmthat the Soviet labor marketworks in authoritiesdo not publish data for correlating many respectslike the U.S. labor market.Educaearningswith explanatoryfactorslike education, tion and experienceare rewarded;men earn more age, and experience.MeaningfulWesternresearch thanwomen.Althoughtheeffects are directionally on wage differentials has requiredmicrodata.AlThe the same, they are quantitativelydifferent. though the Soviets have conducted household of returnsto educationis different, returns pattern surveys,theirresultsare selectively reportedin the to experienceare lower,occupationalsegregation formof sample averagesor simplecross tabulaof women is less important.The most striking tions (Tsypin, 1978). Moreover,Soviet statistical is that Soviet workersare institutionaldifference authoritieswould find it difficult to obtain unrewardedand penalizedforpoliticalactionsexterbiased responsesto questionson politics,undernal to the enterprise. groundeconomicactivity, and privileges. The immigrationof large numbersof former Soviet citizensto Israel, West Germanyand the II. ModellingtheSovietLabor Market United States in the 1970s providesa rareopportunityto study large samples of formerSoviet A. Background citizens. The firstmicrodata studies of Soviet The Soviet labor marketbears a strongerrehousehold economic behaviorused a sample of to capitalist marketsthan do other semblance 1,000 immigrantsresiding in Israel who left factor markets.Despite a numberof restricSoviet the Soviet Union in the early 1970s (Ofer and Soviet adultpopulationlargelyhas freethe tions, Vinokur,1979, 1981,1983,1984; Pickersgill, 1976). of of choice dom occupation and location. The More recently,the National Opinion Research Sovietwage system,describedby Chapman(1979), Received for publicationMay 28, 1986. Revision accepted Bergson (1964), and Kirsch (1972), combines forpublicationMay 8, 1987. flexicentralizedwage settingwithenterprise-level *Universityof Houston. setindustry base pay rates Data for this studywere producedby the Soviet Interview bility.State committees Project.This projectwas supportedby GrantNo. 701 fromthe and skill differentials for blue-collaremployees National Council for Soviet and East European Research to and detailedcompensationschedulesforhigh-level JamesR. Millar, the Universityof IllinoisUrbana-Champaign, compensatefor in this positions.Adjustmentcoefficients PrincipalInvestigator.The analysisand interpretations thesponsors.We studyare thoseof theauthors,notnecessarily uftdesirablejobs and locations. Bonuses, prewould like to express our gratitudeto Elizabeth Clayton, miums,piece rates,and reclassification opportuniHerbertLevine, Kent Osband, Steven Craig, James Griffin, GertrudeSchroeder-Greenslade, and anonymousrefereesfor ties give the managersome freedomto respondto theirhelpfulcomments. local labor marketconditions. IT Copyright(? 1988 [ 23 j 24 THE REVIEW OF ECONOMICS AND STATISTICS The primarytaskof theSovietrewardsystemis imize regimestabilityand use thewage systemas to induce people to takejobs amongoccupations, a controlinstrument.'Soviet workerscan be reindustriesand regionsto meet planned staffing gardedas accumulatinga stockof politicalcapital, requirements.As a firstapproximation,one can whichcan be eitherpositiveor negative.Workers wages to can add to theirstockby engagingin regime-supsay that the Sovietsuse market-clearing allocate labor. As such, the Soviet incentivesys- port activitiesor make withdrawalsthroughacts tem (like its capitalist counterpart)must offer of regimedisloyalty.Politicalauthoritiesdesireto and productivity know the individual's stock of political capital. compensatingwage differentials The existenceof an activemarketis Insofar as Soviet authoritiescannot gatherinfordifferentials. supportedby findingsof similarpatternsof wage mation on actual thoughtprocesses,theywould differentials, employmentand turnoverin Soviet have to screen using observable signals and and capitalistlabor markets(Bergson,1964,chap. credentialsmuch like Westernmanagers(Spence, 6; Pryor,1985, chap. 8; Gregory,1973; Oferand 1973). Positive signals consist of organizational Vinokur, 1981; Granick, 1987). Despite similar memberships,attendancerecords,and volunteer differ- activitiesin supportof the regime.Anti-governpatterns,thereare importantinstitutional ences betweenWesternand Soviet labor markets ment activities(strikes,attendingunsanctioned (Schroeder, 1979; Feshbach, 1983; and Nash, meetings,protests)send out signalsof regimedis1966). The state bears virtuallyall the explicit loyalty. In the Soviet system,privileges(such as access (and many implicit) costs of highereducation. Graduates of highereducation are assigned ad- to closed shops or clinicsor use of an officialcar) to firstjobs. Administrative posi- are allocated both by managersand by political ministratively tions are filledfroma partyor statenominations authorities.Rational managers(like theirWestlist. Soviet labor unions bear no resemblanceto ern counterpartsdescribed by Hashimoto and unions.An internalpassportsystem Raisian, 1985) would preferentially Western-style allocate priviallocationof housinglimit leges to employeeswho acquire firm-specific huand the administrative the mobilityof workers. man capital. Sovietmanagerialallocationof priviIf theSovietlabor marketbehavesgenerallylike leges, therefore, shouldnot be expectedto depart its Westerncounterpart,then standardWestern fromWesternpatterns.Rational Soviet political of authorities,however,mightallocate privilegesinmodels (modifiedfor institutional differences) to the human capital, compensatingwage differentials,dependentlyof theindividual'scontribution and incentive-wagecontracting(Stiglitz, 1975; firm.Katsenelinboigen(1980) has hypothesized Spence, 1973; Becker,1962; Mincer,1974) can be that Soviet officialsallocate privilegespreferapplied to Soviet wages. The standardmodel de- entiallyto high-levelpersonnelto increasepolitipicts the equilibriumwage as a functionof gener- cal control of the responsiblepositions in the human capital (including economy.The higherthe position,the largerthe alized and firm-specific such as loyaltyto the percentageshare of privilegesin total compensaqualitative characteristics and demographicattri- tion. Hence, privilegesmightbe allocated among firm),job characteristics, butes. Two additional factorsmust be added to Soviet workers in a manner not explained by We and job characteristics. rewards workercharacteristics adapt the model to Sovietcircumstances: alloca- find empirical support for Katsenelinboigen's forpoliticalloyaltyand the administrative propositions.2 tion of privilegedin-kindbenefits. The effectsof theconventionalfactorson wages human 1 Politicalauthoritiesmayrewardregimeloyalistsby offering are well known.General and firm-specific worker and hence raise wages. easier access to higherpaying occupationsand encouraging productivity capital raise compensa- higherpay withina given occupation.Appointmentsto reUndesirable job characteristics positions are controlledby political authorities affectjob pref- sponsible tion. Demographiccharacteristics throughthe nomenklatura.A record of political reliability erences.The hypothesisconcerningpoliticalloyal- increases the chances of being admittedto highereducation. the earnings of Soviet Personnelcommitteesmay selectworkerswithbetterpolitical ty is straightforward: Politicallydisloyalworkersmay be denied overtime workersare positivelyaffected by politicalloyalty records. workor bonuses or maybe placed on higherpiece-ratenorms. and are negativelyaffected by politicaldisloyalty. 2 We ran separatelogitregressionson car, clinic,and closed desireto max- shop privilegesand foundthat the receiptof theseprivileges Rational Sovietpoliticalauthorities THE EARNINGS OF SOVIET WORKERS B. Data fromtheSovietInterview Project 25 urban population,is not a representative sample of the referentpopulation.The greatestrisk of bias would be a pureJewishdistortionthatcauses SIP behavioralcoefficients to differ fromthereferent population. The SIP relationshipbetweenalcohol consumptionand income,forexample,could not be generalized.We have no a prioriway of identifying such biases thatwould affectearnings. Soviet Jews findit difficult to enterthe highestlevel positions,and theymayhave to workharder for advancement.The potentialbiases have been addressed in considerable depth by Ofer and Vinokur(1984), Andersonand Silver(1987b), and Swafford(1987). It is our opinionthatsuchbiases of thisstudy. do not dictatethefindings The interviewswere conductedbetweenApril and December of 1983, and respondentswere asked to speak about theirlives in the Soviet Union priorto thebreakcaused by theemigration decision.3For mostrespondents, thiswas 1978 or 1979-the end of theirlast "normal" period of life in the Soviet Union. Analysisof associated case interviews (Andersonand Silver,1987a) shows thatdespitethe retrospective natureof the survey respondents'recall of objectiveeconomicdata is quite accurate. Over 90% of the SIP respondentswereJewish, and theycame frommediumand large cities in the European partsof the SovietUnion. The SIP sample was gatheredunder favorableconditions of theEarningsModel for elicitinginformationon the referentUSSR C. Specification population,the SovietEuropeanurbanpopulation A reducedformearningsequationrelatesearnresidingin mediumto large cities.First,the SIP ings to conventionalhumancapitalfactorsas well sample was stratifiedfrom over 33,000 cases as to measuresofjob characteristics, privilegeand according to geographic,educational, and na- political loyalty.The sample is restrictedto retionalitycharacteristics of thereferent population. spondentswho reportearningsfrom1978 or 1979. Second, there is strikingsimilarity(see table 1) LOG EARNINGS = ao + b1EXP + b2EXP2 betweenthe SIP samplemeansand referent popu+?b3iEDi + b4MOVE + 2c1jREGj lation means of standardeconomic and demo+ EC3mOCCm + d1AGE +?c2kINDk graphicvariablesnot used in stratifying the sam+d2MARRIED + d3ADULTS + d4KIDS ple. Althoughsimilarin otherrespects,the SIP +d5MALE + e1CAR + e2CLINIC sample is more highlyeducated and more con+ e3SHOP + e4SQMETERS + f1GOOD centratedin serviceoccupationsthan the referent + f2GOOD: LEADERS + f3BAD population. Third, most respondentswere not politically active and expressedboth favorable + f4BAD: LEADERS and unfavorableattitudestowardsthe Soviet sys+f5GOODL X BADL + gHOURS + u tem (Millar and Clayton, 1987). A significant (1) number participatedregularlyin regime-support A semi-logequationis estimated,the preferred activities,and some evenoccupiedleadershipposi- functionalform for earningsequations (Rosen, tions. A very small proportionwere leaders of 1977). The dependentvariableLOG EARNINGS activities(table 2). Fourth,the is the natural log of nominalmonthlyearnings. anti-government proportionof SIP respondents withprivileges(5% The explanatoryvariablesare groupedaccording to 7%) appears to be reasonablegiventhe higher to generalized human capital measures (the b level of educationof theSIP sample. coefficients), job characteristics (the c coefficients), A self-selectedsample of immigrants,repredemographiccharacteristics (the d coefficients), of the Soviet sentingprimarilyan ethnicminority firm-specific human capital (the e coefficients), and Since the political loyalty (the f coefficients). depends upon earningsand education(the latterin two of the earnings,a variable threecases). Privilegestend to be allocated accordingto the dependentvariableis monthly of the positionas proxiedby earningsand edu- for hoursworked(HOURS) mustbe includedto responsibility cation. Projectsee Millar adjust for part-timework. The u denotes the 3 For an overviewof the SovietInterview and de(1987). For a discussionof the SIP samplingframeand proce- stochasticerrorterm.Variabledefinitions dures, see Anderson,Silverand Lewis (1986), Andersonand scriptivestatisticsare givenin the appendix. (1987). The data are availSilver(1987a, 1987b) and Swafford Generalizedhumancapitalis measuredby years Consortiumfor Political and able from the Interuniversity of workexperience(EXP and EXP2), nine cateSocial Research,Universityof Michigan. 26 THE REVIEW OF ECONOMICS AND STATISTICS TABLE 1.-COMPARISONS OF THE USSR POPULATIONAND SOVIET INTERVIEWPROJECTSAMPLE: EMPLOYMENT,HOUSING AND FAMILY SIZE Variable 1. EMPLOYMENT a. EmploymentStatusa(inpercent) Employed Going to school leave Retired,disabled,maternity Keepinghouse Other b. Branchof Employment (in percent) Industry forestry Agriculture, communication Transportation, Construction Trade,cateringsupplies Communalhousingand services Health Education Artsand culture Science apparatus Creditand Government USSR Urban Population 1978 38.3 0.1 12.3 11.8 10.5 4.6 5.6 8.0 1.7 3.8 3.3 100.00 12.9 24.0 3.2 SIP 1978-79 69.5 2.5 16.5 9.1 2.4 100.00 71.0 3.0 16.0 10.0 100.00 c. AverageMonthlyEarnings(in rubles) 160 All workers(excludingagriculture) 177 Industry 190 Transportation 139 Communication 191 Construction 124 Trade and catering 123 Communalhousing& services 116 Health 132 Education 108 Artsand culture 170 Science 147 Creditand government apparatus 40.6 d. Hours workedperweek,industry e. Time spentshoppingperworkday(in minutes)41.0 2. HOUSING a. Space per capita (squaremeters) b. Privateownership(percent) 3. AVERAGE FAMILY SIZE (persons) Moscow 1978 27.0 0.0 9.6 7.1 9.2 4.7 5.2 5.4 1.5 19.2 5.3 100.00 30.5 0.2 6.3 8.9 14.1 5.5 7.0 10.3 3.8 9.9 3.5 100.00 166 174 188 158 183 126 121 129 149 144 170 172 159 167 187 129 191 135 140 132 141 162 185 165 40.0 60.0 13.5 37.0 3.2 a USSR Employment status is for1979. Sources: Items la, ld, le, 2a, 2b, 3 from Narodnoe KhoziaistvoSSR 1979, p. 375, p. 397; VestnikStatistiki,No. 6, 1981, p. 79. Item lb: There is no urban population breakdown after the 1970 census. Therefore,we adjust the 1978 branch employmentdistribution(Narodnoe KhoziaistvoSSR 1978, p. 366) by the urban to total USSR employmentratios in the 1970 census (}toqi vsesoiuznoiperepis' naseleniia 1970 goda, Vol. V, pp. 192-197). The Moscow distributionis from Moskva v tsifrakh1979, p. 87. Item lc: Narodnoe KhoziaistvoSSR 1978, p. 373. Moskva v tszfrakh1979, p. 93. gories of completededucation(ED), and by job are measured moves (MOVE). Jobcharacteristics by 16 regions(REG), 20 industries(IND), and 44 Demographic occupational categories (oCC).4 4 It is importantto note thatthe occupationalbreakdownis quite detailed (34 groups for high-levelworkersand 10 for the44 occupationgroupsare blue-collarworkers).For brevity, paper(Gregory not reportedherebut aredescribedin a working and Kohlhase, 1986). are givenby (AGE), maritalstatus characteristics (MARRIED), presence of other adult family members(ADULTS) or children(KIDS) in the familyand gender(MALE). Political loyaltyis measuredby the memberships and activitiesreportedby SIP respondents (such as membershipsin trade unions, workers committees, komsomol), how frequentlythey attended,and whethertheyplayedleadershiproles. THE EARNINGS OF SOVIET WORKERS 27 TABLE 2.-POLITICAL ACTIVITY OF THE SIP SAMPLE SupportActivities in at Participatedregularly activity least one regime-support trade such as partycommittees, union,workerscommitteeor was a komsomol(communistyouthleague) activist;excludingleaders Was a leaderin above activities DisloyaltyActivities Participatedin at least one activitysuchas antigovemment art shows,studygroups, unofficial of protests,strikes,distribution illegalpublications;excluding leaders Was a leader in above activities Variable Name High-Level (percent) Blue-Collar (percent) GOOD 29.7 25.4 GOOD: LEADER 29.7 17.9 BAD 29.0 15.9 BAD: LEADER 2.7 1.7 Soviet citizensroutinelybelong to certainorgani- disloyal by engagingin regimesupportactivities. onlythose The coefficientson the education dummies are zations(like thetradeunion); therefore, who reported regular attendalnceor leadership expectedto be larger(positive)forhigherlevelsof roles were placed in the four political groups education. The rewardsto experience(EXP and describedbelow (table 2). Respondentswho self- EXP2) shouldincreaseat a decreasingrateso that identifiedas being leaders,organizers,or officers a positivesignis expectedon EXP and a negative were classified as GOOD: LEADERS. Regular sign on EXP2. The male gender(MALE) coeffiparticipants(but non-leaders)were classifiedas cient is likelyto be positivebased upon previous GOOD. Respondentswho engagedin acts ofpolit- studiesof sex differentials. in the same way The signson the fourprivilegevariables(CAR, ical disloyaltyweredifferentiated An term interaction as BAD: LEADERS or BAD. CLINIC, SHOP, SQMETERS) are indeterfor While privilegesserveas a proxyfordewas included to test minate. x BADL) (GOODL theyare also a tradeoffsbetweenpoliticalloyaltyand disloyalty sirable employee characteristics, fringebenefitthat could be tradedoffforlower at the leadershiplevel. We do not have direct data on firm-specificmoney wages (Dye and Antle, 1984; Leibowitz, on 1983; Ehrenberg,1980). In the Sovietcase where human capital,but SIP did gatherinformation privilegestypicallycannot be purchasedlegally, privileges-access to a closed shop (SHOP), closed health clinic (CLINIC), use of an official themarginalvalue of privilegemaybe higherthan in the West. The net effectdependsupon whether car (CAR) and housing space (SQMETERS). Such privilegesare included because they may the positiveeffectof desirableworkercharacterishuman tics dominatesthenegativeeffectof theprivilegeproxy (as argued above) for firm-specific capital and forthe perceivedpoliticalimportance wage tradeoff. Three furtherpointsmustbe made concerning of the respondent. are expectedon thepolitical the model. First,we includeregionaldummyvariPositivecoefficients in local loyaltyvariableswithgreaterrewardsforpolitical ables (REG) to controlfor differences activism(GOOD: LEADER) thanforregularpar- amenities,climate,and livingcosts.5 Second, an ticipation(GOOD). We expectnegativecoefficients forpoliticaldisloyalty,withstronger penaltiesfor 5 We experimentedwithdirectmeasuresof amenitiesforthe than participators 18 cities from which a majorityof the respondentscame. leaders (BAD: LEADER) Measures such as per capita medical facilities,libraries,and term(GOODL (BAD). The signon theinteraction factorsbut failedto yield theaterswereenteredas explanatory x BADL) is an empiricalissue. A negativesign significantcoefficients. withmeasuresof We also experimented size coefficients. shows that individualscan compensateforbeing citysize but failedto findsignificant 28 THE REVIEW OF ECONOMICS AND STATISTICS instrumentalvariablesprocedureis used to esti- thisproposition,butnotwithoutsurprises. Activist mate hours of work(HOURS) as hoursdepends regimeloyalty(beingin the GOOD: LEADER catupon earningsper unitof time.6Third,theprivi- egory) is rewardedby higherearnings.With oclege coefficientsare subject to a simultaneous cupation held constant,a high-levelemployeein equation bias which the compensationliterature the GOOD: LEADER categoryearns 6.1% more recognizesbut does not solve (Ehrenberg,1980, than an employee with no regularpolitical inpp. 480-483; Brown,1980). As a componentof volvement.The returnrisesto 8.8% whenoccupathe fullwage, fringesbelongon theleft-handside; tion is not held constant.Thus, 2.7 percentage as proxies for workercharacteristics, theybelong points of the 8.8% monetaryrewardfor activist on the right-handside. The data do not allow us loyalty comes in the form of placement in a to solve this potentialbias, but the othercoeffi- higher-paying occupation,whiletheremaining6.1 cientsare unaffected by whethertheprivilegevari- percentagepoints representhigherpay withina ables are included. givenoccupation.The monetary rewardforregime loyaltyappears to come primarilyin the formof III. RegressionResults higherpay withina givenoccupationratherthan as an admission ticketto higher-paying occupaRegressionresultsfor 1,349 high-level(whitetions. Blue-collarworkersearn a similarreward collar, technical,scientific,and managerial)emfor activist loyalty(about 9%), but the loyalty ployees and for591 blue-collarworkersare given rewardis exclusivelyin the formof a higherpay in table 3. Separate models are estimatedfor within a given occupation. Less-active regime blue-collar and high-levelmanpowerbecause of loyalty(being simplyin the GOOD category)does the institutionaldifferencesin Soviet compennot yield higherearnings.To earn a rewardfor sation practices for each group (described in politicalloyalty,one mustbe an activist. Chapman, 1979). Significancetestsforcoefficient Regime disloyalty appears to be severely heterogeneityshow that the coefficient sets are punished in the case of blue-collarworkers.A indeed statistically different. blue-collarBAD: LEADER mayearnfrom34% to fromregressionswith Analysis of coefficients 36% less than a fellow workerwith otherwise and without occupation provides information identical characteristics.8 If blue-collar workers about the channels throughwhich earningsare sufferan earningsloss of thismagnitude,activist affected.Accordingly, table 3 reportstwocolumns disloyaltyis the most importantdeterminantof for each sample: the firstcolumn of coefficients blue-collar earnings. The activist disloyaltyof includesdetailedoccupational(OCC) dummiesto high-levelemployees is not punished by lower hold therespondent'soccupationconstantand the is negaearnings(the BAD:LEADER coefficient second column omitsthe OCC dummies.Coeffitive but not significant).The SIP sample does cients on the dummyvariables are interpreted provide ample evidencethat activistanti-governrelativeto theomittedcontrolcategoriesidentified mentactionsby high-level employeesare punished in the table notes.7 (Bahry and Silver,1987). Our resultsuggestsonly that Soviet authoritiesuse punishmentotherthan A. Loyaltyand Disloyalty monetarysanctions.As in the case of nonactivist The fivepolitical behaviorcoefficients test the loyalty,nonactivistdisloyaltydoes not appear to propositionthat Soviet authoritiesrewardloyalty carry any monetarysanctions.The BAD coeffiThe insignifiand penalize disloyalty.The regressionssupport cients are uniformlyinsignificant. cant GOODL X BADL interactioncoefficients 6 The instruments cannotcompensatefor are the exogenousvariablesin the wage suggestthatSovietworkers equation plus dummiesforsecond and privatejobs, spouse's disloyaltyby acts of regimesupport. earningsand spouse's earningssquared, numberof children A possible explanationfor the difference beand the interactionof childrenand spouse's earnings. tween coefficients is that blue-collar the disloyalty 7 The coefficient on continuousvariables shows the percentagechangein earningsbroughtabout by a one unitchange "bad" activitiestend to be more factory-protest in the explanatoryvariable.For dummyvariables,the coeffiin earnings cient shows the approximatepercentagedifference 8 Note that the negativecoefficients on activistregimedisbetween the dummy group and the omittedcontrol group at the 10% level. loyaltyare significant (Halvorsen and Palmquist,1980). THE EARNINGS OF SOVIET WORKERS 29 TABLE3.-DETERMINANTS OF SOVIETEARNINGS, INSTRUMENTAL VARIABLES ESTIMATESa High Level Earnings OccupationIncluded Variable Human Capital EDO ED1 ED2 ED3 ED4 ED6 ED 7 ED8 EXP EXP2 Blue Collar Earnings OccupationOmitted 0.0084 -0.0297 -0.0190 -0.1750 0.0064 0.0809 0.1279b 0.0258 -0.0004b (0.04) (-0.37) (-0.15) (-0.91) (0.17) (1.12) (3.17) (5.39) -0.0956 -0.0985 -0.1116 -0.2524 0.0113 0.0884 (0.16) 0.0145 0.2238b 0.0312b (-0.51) (-1.19) (-0.92) (-1.24) (0.28) (1.27) (5.58) (6.61) - 0.0005b (-4.47) PoliticalLoyalty GOOD 0.0035 GOOD: LEADER 0.0607b BAD 0.0087 BAD:LEADER -0.0547 GOODL X BADL 0.0617 (0.16) (2.21) (0.39) (-0.73) (0.56) 0.0073 0.0878b 0.0137 -0.0781 0.0527 (0.31) (3.07) (0.60) (-0.98) (0.45) Privilege CAR CLIN SHOP SQMETERS 0.0788b 0.0445 -0.009 0.0002 (2.31) (0.84) (-0.02) (0.68) 0.0796b 0.0320 0.0443 0.0002 -0.0005 0.0126 0.0022 (-0.18) (0.48) (0.21) 0.0009 0.0172 0.0013 Demographic A GE MARRIED ADULTS KIDS MALE 0.0056 -0.0268b 0.1809b JobCharacteristics HOURS -0.0025 IND1 -0.0415 IND2 -0.1147 IND4 -0.0126 INDS -0.0717 IND6 IND7 IND8 IND9 IND1O IND11 0.1810 0.0889 0.0502 -0.0149 -0.0939 -0.0271 IND13 -0.1414 IND12 (-1.96) (4.49) -0.0195 0.2236b (-0.17) (-0.45) (-1.13) (-0.17) 0.0019 -0.0854 -0.0535 -0.0122 (-1.37) -0.0500 (0.40) -0.0468 0.0845c -0.0037 -0.3587a 0.1707 (-0.99) (1.63) (-0.06) (-1.73) (0.53) (2.04) (0.68) (0.89) (0.98) -0.0997 0.0087 0.0910 -0.0002 (-0.92) (0.05) (0.78) (-0.57) -0.1256 0.0385 0.1597 - 0.0002 (-1.13) (0.22) (1.40) (-0.60) (0.29) (0.61) (0.12) (-1.36) -0.0016 0.0582 -0.0015 0.0057 (-0.29) (1.10) (-0.09) (0.22) 0.0001 0.0618 0.0050 0.0166 (0.02) (1.16) (0.30) (0.62) -0.0030 -0.3993 0.1053 0.1387 (-0.21) (-1.29) (0.46) (0.91) -0.0009 -0.3526 0.1458 0.0732 (-0.06) (-1.18) (0.64) (0.48) (-1.53) (-0.84) (0.70) (0.11) (-1.51) (1.22) (5.95) (0.18) (-0.86) (-0.51) (-0.16) (-0.93) -0.1244 a (3.51) (-1.65) 0.2870b -0.1167 0.2034 0.1666b 0.1830 0.0035 -0.0298 0.0103 (1.62) (2.29) (1.02) (0.05) (-0.22) (0.24) -0.1729 -0.1010 0.2417 -0.0458 -0.2244 0.1257 (-1.12) (-0.86) (0.97) (-0.46) (-1.18) (1.50) -0.2352 -0.1018 0.1805 0.0095 -0.2484 0.1036 (-1.32) -0.1209 (-1.06) -0.2229 (-0.67) -0.2500 -0.0847 (-1.04) IND16 IND17 -0.1496b -0.2005b (-2.15) (-3.44) -0.1888b -0.1951b (-4.05) (-2.04) IND19 -0.0836b -0.0004 (-0.01) -0.0304 0.1867b (1.50) (1.32) (0.29) (-0.23) (-0.76) (-0.66) (-1.04) (-2.65) (-2.05) (-0.57) -0.1413b -0.0786 -0.0696 -0.0284 (-1.90) (-0.88) (1.73) (0.22) (-1.63) (0.40) (-1.76) IND20 0.0218b -0.0003a -0.0404 0.0885a 0.0143 -0.3394c 0.1312 -0.1294a -0.2089b (0.14) (-1.96) (-1.54) (-0.59) (-0.60) (0.82) (-0.21) (0.83) (2.25) (-0.85) (-1.45) IND18 (-1.21) 0.0377 -0.1959b -0.0905 -0.0548 -0.0867 0.0415 -0.0210 0.0646 -0.0650 -0.1066 -0.0698 -0.0002 (-0.15) (-2.29) (-1.60) (-0.75) (-0.83) (1.10) (-0.09) (0.84) (1.74) (-0.58) (-1.96) IND15 -0.0401 -0.2251a -0.0937 -0.0705 -0.1194 0.0564 -0.0094 0.0637 0.0169a -0.0457 -0.1079b IND14 OccupationOmitted coefficient (t-statistic) coefficient (t-statistic) coefficient (t-statistic) coefficient (t-statistic) (-3.14) MOVE OccupationIncluded (-2.80) (-1.14) (-0.69) (-0.52) -0.2586b -0.5312b -0.3851b -0.3466b -0.1732 -0.2000 -0.1660 (-3.26) (-2.37) (-2.62) (-1.72) -0.3577b (-1.54) (-5.32) (-0.79) -0.5082b -0.1821b -0.4471b -0.3939b (-3.32) (-2.03) -0.2230 (-1.43) (-0.90) -0.2047 (-1.16) -0.2353a (-1.30) (6.10) (-2.45) (-2.60) (-1.19) (-1.86) THE REVIEW OF ECONOMICS AND STATISTICS 30 TABLE 3. -(CONTINUED) Blue Collar Earnings High Level Earnings OccupationIncluded Variable Region REG2 REG3 REG4 REGS REG6 REG7 REG8 REG9 REG10 REG11 REG12 REG13 REG14 REG15 REG16 Constant OccupationIncluded OccupationOmitted coefficient (t-statistic) coefficient (t-statistic) coefficient (t-statistic) coefficient (t-statistic) -0.0862b 0.0438 0.0775 -0.0943b -0.2052b -0.1340b -0.2014b -0.0580 0.3063a -0.1112b -0.0105 -0.1532b 0.1434 0.0008 -0.1544 4.76737b 0.51 0.47 R2 Mean Square Error 0.0983 1349 Sample Size ,K_ OccupationOmitted (-3.33) (0.65) (0.65) (-2.63) (-3.83) (-2.78) (-4.15) (-1.20) (1.86) (-2.28) (-0.21) (-2.70) (0.60) (0.02) (-0.80) (8.87) -0.1176b 0.0185 -0.0160 -0.1085b - 0.2475b -0.1581b -0.2381b -0.0671 0.2639 -0.1264b 0.0067 -0.1487b 0.1439 -0.0246 -0.2525 4.3928b 0.41 0.39 0.1143 1349 (-4.29) (0.30) (-0.13) (-3.03) (-4.37) (- 3.09) (-4.67) (-1.38) (1.52) (-2.45) (0.13) (-2.51) (0.67) (-0.53) (-1.26) (11.46) 0.0109 -0.0406 0.3513 0.0444 0.0358 -0.0846 0.0684 0.0205 -0.2724 -0.0015 0.0335 0.1166 0.3380 0.0465 -0.1133 4.7314b 0.36 0.27 0.1710 591 (0.14) (-0.36) (1.37) (0.62) (0.33) (-0.88) (0.73) (0.20) (-1.07) (-0.02) (0.40) (0.98) (1.02) (0.54) (-0.65) (8.34) 0.0248 -0.0561 0.3134 0.0773 0.0777 -0.0700 0.0566 0.0469 -0.3220 0.0365 0.0368 0.1238 0.1785 0.0412 -0.1247 4.5914b 0.33 0.25 0.1760 591 (0.32) (-0.48) (1.21) (1.07) (0.73) (-0.72) (0.60) (0.45) (-1.26) (0.40) (0.44) (1.03) (0.53) (0.46) (-0.70) (8.03) Note: A two-stage estimationprocedure is used where an instrumentforhours worked is constructedin the firststage. The dependent variable in the second stage is the natural log of monthlyearnings; omittedcategoriesare REG1, IND3, ED 5, no privilege,no political behavior, serviceworkers(blue collar) or entry level engineers (high level). For brevitycoefficientson occupation are not reported; complete tables are available upon request fromthe authors. a Significantat 10% level, 2-tailed test. b Significantat 5% level, 2-tailed test. c Significantat 10% level, 1-tailed test. raises education higher onlycompleted which manpower "bad" activities, orientedthanwhile-collar 4-6 having sample, In the blue-collar earnings. (Bahry, in nature tend to be moreintellectual a by lowers less earnings or of schooling years reIf the regime 1987). Silver, and Bahry 1987; 7-8 while only to 22%, having 20% substantial to threats serious more as protests factory gards by 9%. Beyondthispoint, it wouldimposeheaviersanc- yearslowersearnings regimestability, vocationaltraining, additionalgeneraleducation, tions. educationdoes not specialized or evensecondary earnings. impact significantly B. Returnsto Education on theearnHighereducationhas twoeffects vocationaleducationand ings of high-level Becauseof extensive Sovietworkers.First,higher in theSovietUnion,it educationenablespersonsto enterhigherpaying schooling correspondence attain- occupations.Second,oncein a givenoccupation, makeslittlesenseto measureeducational variable(suchas yearsof personswithhighereducationearn morethan mentas a continuous is better othersin thesameoccupation attainment Rather,education schooling). withlesseducation. of school- The 22.4% total educationeffecton high-level categories brokendownintodifferent areusedas thecontrol earningsis composedof 9.6%(22.4-12.8)due to ing.Highschoolgraduates show that the education'simpacton occupationalchoiceand group and alternateregressions theout- 12.8%dueto theeffect choiceof controlgroupdoes not affect within a given ofeducation come. occupation. education higher tocompleted The 22.4%return Table 3 revealsthathavingeitherverylow or for graduation) high-level affectsSoviet (relativeto high-school veryhigh educationalattainment foundby Ofer and to that ofeducation workersis close increments whilesuccessive earnings, fortheearly1970s. 142-143) pp. (1984, Vinokur earnings rangesdo notaffect in theintermediate their leastpartially, at confirm, also results These For high-level relativeto highschoolgraduates. THE EARNINGS OF SOVIET WORKERS 31 findingthat returnsto education increase with D. Female Earnings higherlevels of schooling.However,we findno Holding occupation constant,women working statisticallysignificantearnings differencesbe- in high-leveland blue-collarjobs earnedbetween tweeneightyearsand completeduniversity educa- 18% and 19% less than men workingin the same tion, while Ofer and Vinokurfinda monotonic industryand having equivalent education,trainprogression.The Sovietpatternof risingreturnsis ing, and personal characteristics. For blue-collar contraryto the Westernpatternof fallingratesof workers,the female earningsgap rises to 29% returnfor successivelyhigherlevels of schooling when occupationis not held constant.This means (Mincer,1974, p. 48; Becker,1975,p. 206). that occupational segregationexplains about 10 The Soviet patternof highincrementalreturns percentagepoints of the blue-collarfemaleearnto the most-highly educatedmembersof societyis ings gap. For high-levelworkers,the femaleearnnot entirelyexpected.Because thestatebearsmost ings gap rises from18% to 22% whenoccupation of the costs of highereducation,the demand-side is not held constant.Only 4 percentagepointsof effectshould drivedown returnsto the university the female earningsgap is accountedforby oceducated. However,thereare a limitednumberof cupational segregationin the case of high-level entry positions in sought-after universitiesand workers. institutesand preferential university admissionsis Our figure for the unexplained differential one way the elite passes on its statusto the next (about one-fifth)is close to Ofer and Vinokur generation(Mathews, 1978; Voslesensky,1984). (1981, p. 144), who findan unexplaineddifferenWhile speculative,our results suggest that the tial of 21% to 25%. For high-levelSovietworkers, supplyeffectdominatesthedemandeffect. occupational segregationplays only a minorrole in accounting for lower female earnings. For C. Experience blue-collar Soviet workers,the effectsof lower Table 3 reveals that both high-leveland blue- earningswithina givenoccupationis twicethatof and nonlinearly occupational segregation.Althoughthereis concollar earningsare significantly related to years of experiencein the workforce. troversyabout the relativeimportanceof occupaThe initialyearof workexperienceraisesearnings tional segregationin explainingAmericanearning by sex (summarizedin the accompabelow thatfoundby differentials by 2% to 3%, a figureslightly nying note),9 we concludethatoccupationalsegreFor emVinokur Ofer and (1981). high-level gation a less importantrole in the Soviet plays of at 33 ployees,earningspeak years experience. Blue-collarearningspeak somewhatlater,some- labor market. wherebetween33 and 40 years,dependingupon whetheroccupationis held constant.Thus white- E. Privilege collar and blue-collarearningspeak at the same There is no significantrelationshipbetween age because of thelaterstartin thelabor forceof earnings and privilegefor blue-collar workers. high-levelworkers. Privilegesdo not have a significant effecton highThe Sovietreturnto experience(2% to 3% in the level earnings(althoughmost of the coefficients initialyear)appears to be lowerthanin theUnited are positive) except forthe use of an officialcar States,whereestimatesare typicallyin the 5% to (CAR), whichcarries8% higherearnings.Positive have also been foundfor 8% range (Mincer, 1974; Duncan and Hoffman, fringebenefitcoefficients 1979; Lang and Ruud, 1986). Althoughby no means conclusive,our resultssuggestthatearnings 9 Oaxaca (1973) findsthatequalizingoccupationaldistribuare less sensitiveto experiencethanin theAmeri- tionswould reducethefemaleearningsgap by about 9%, about can labor market.One possibleexplanationis that one-halfof the unexplainedgap. Malkiel and Malkiel (1973) Americanfirms,in theirimplicitcontracting, must findthat occupationalsegregationexplainsmost of the earnings differential in the large corporationstudied. Although rewardexperiencemoreto retainfirm-specific hu- there are ongoing controversiesabout the relativeeffectsof man capital. Soviet managersmay be aided in occupational segregationand lowerpay withinthe same job, retainingexperiencedworkersby the lesser geo- we interprettheliteratureas arguingthatoccupationalsegregation is more importantin explainingthe Americanfemale graphicmobilityof workersand by housingcon- earningsgap. For a surveyof thisliterature, see Ehrenbergand straints. Smith(1982), pp. 396-400. 32 THE REVIEW OF ECONOMICS AND STATISTICS the United States (Leibowitz,1983) so thisis not create artificial labor shortages in Moscow. an unusual result.The privilegeresultssupportthe Moscow residentsmaybe better"connected"than interpretation that privilegesare used to reward residentsof otherregions.Marginalsocial producdesiredworkercharacteristics (includingthe level tivitymay be higherat the centerin a centrallyof the position) because a positive coefficient planned economy. means that such rewardsdominatethe substitution of privilegeforlowerwages. This conclusion IV. Conclusions must remainspeculativebecause of the potential We use micro data gatheredfromthe Soviet simultaneousequationbiases discussedabove. InterviewProject to investigatethe determinants of Sovietearnings.The uniqueSIP data set,unlike F. Regionaland Industry Effects officialSoviet statistics,allows an in-depthstudy Space limitationspreventa full discussionof of the Soviet incentivestructure.Our analysis regionaland brancheffects.Table 3 revealsthat thatSovietlabormarketsoperatein many confirms the branchesin whichearningsare low are those respects like U.S. labor markets.Yet immense (trade,healthand physicalculture,and education) betweenthe two nations institutionaldifferences that are typically identifiedas low priority returnsto certainworkercharcause differential branches.This findingsuggeststhatSovietauthoracteristics.The most strikinginstitutional impact itiesare indeed successfulin enforcing theirbranch is the Soviet practiceof rewardingand penalizing prioritieson thewage system. politicalbehaviorthatis externalto thefirm. For the regionalcoefficients, Moscow, whichis The Soviet wage systemrewardsactivistregime assumed to be the most desiredlocation in the support.Workerswho are leaders of regime-supSoviet Union, is used as thecontrolregion.Nonport activitiesearn from7% to 9% more,ceteris Moscow regions are expected to have positive paribus. High-levelemployeesare rewardedfor compensatingreal wage differentials relativeto activistregimeloyaltyprincipallyby higherpay Moscow. The resultsdo not supportthe expectawithina given occupation,but theyare also retion. For blue-collarworkers,the regionalcoeffiwarded by admission to higher-paying occupacients are uniformlyinsignificant. For high-level in tions.Blue-collarworkersare rewardedentirely workers,there are a numberof negativecoeffithe formof higherpay withina givenoccupation. cients for non-Moscow regions. Because REG Activistregimedisloyaltyof high-levelmanpower in additionto amenities, proxiesforseveraleffects is surprisingly notpunishedbylowermoneywages. the coefficients representthe combinedimpactof For blue-collar workers,however,activist dismanyfactors.Thereare fourpossibleexplanations loyalty appears to resultin significant losses of forfindingrelativelyhigherwages in Moscow for earnings. Only political activismmatters.Nonhigh-levelworkers. Higher wages may be exleadershiprecordsof loyaltyor disloyaltydo not plained by cost-of-living differences because we affectearnings. are using nominal earnings.10 Entrypermitsmay As in the United States,Soviet labor markets rewardeducationand experience.Yet thedifferent 10 settingforattaininghighereducation Soviet pricingauthoritiesset zonal retailprices for food institutional by in the Soviet Union translatesinto a differential differentiated products;nonfoodproductsare not officially geographiczones. Food pricesin statestoresshouldbe higher patternof rewards.The returnto educationis low by 8% in Moscow, Leningradand the Baltics than in the for Soviet workersexceptat the upper and lower Ukraine accordingto officialregulations(Kokorev,1978, pp. 184-190). It is also likelythatcollectivefarmfood pricesare bounds, contraryto the U.S. patternof declining higherin Moscow than elsewhere,althoughthereis no firm rates of returnto higherlevels of education.For data to support this point. We are gratefulto Gertrude Schroeder-Greensladefor bringinginformationon regional high-levelmanpower,onlycompletedhighereduprice variationsto our attention. cation yields a positiverate of return.For blueforMoscow, collar workers,only those with limitedgeneral differential We conclude that the cost-of-living if it exists,is likely to be small. We estimatea 10% upper bound on the highercost of livingin Moscow relativeto other educationearn less. Returnsto experienceappear providedby lower thanin the United States. information WesternUSSR regions.Furthermore, SIP respondentson cost of living(perceivedpovertystandard Even the Sovietsystemencountersa substantial inflationrate in the immediatecommunity)did and five-year highercost-of- gap between the earningsof otherwiseidentical not indicate that Moscow had a significantly living. male and femaleworkers.However,theSovietgap THE EARNINGS OF SOVIET WORKERS is associated withdifferent forcesthanthe gap in the United States.The Sovietfemaleearningsgap is about 20%, holdingotherfactorsincludingoccupation constant.Withoutoccupationheld constant,Soviet women earn from22% to 29% less. Lower pay withina givenoccupationaccountsfor a much higher proportion(two-thirdsto fourfifths)of the femaleearningsdifferential than in the United States. 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APPENDIX TABLE Al.-CHARACTERISTICS OF HIGH LEVEL AND BLUE COLLAR SAMPLES High Level Variable Description Mean Standard Deviation Blue Collar Mean Standard Deviation Human Capital EDO ED1 ED2 ED3 ED4 EDS ED6 ED7 ED8 EXP EXP2 MOVE 0.000 0.003 0.018 0.000 0.054 0.132 0.005 0.047 0.154 0.071 0.213 0.361 0.009 0.094 0.051 0.220 0.002 0.047 0.017 0.129 0.071 0.266 0.048 0.583 19.275 0.257 0.442 0.214 0.493 9.634 0.367 0.223 0.044 0.091 22.184 0.482 0.417 0.205 0.288 10.695 464.276 0.085 412.661 0.278 606.34 0.091 514.391 0.288 0.297 0.297 0.290 0.027 0.013 0.457 0.457 0.454 0.163 0.112 0.254 0.179 0.159 0.017 0.008 0.436 0.384 0.366 0.129 0.092 car (= 1) Use of official Legal access to closedclinic(= 1) Legal access to closed shop (= 1) Squaremetersof livingspace 0.094 0.054 0.059 39.683 0.292 0.226 0.236 37.417 0.039 0.014 0.034 45.614 0.194 0.116 0.181 63.291 Age at end of last normalperiod Married(= 1) Householdsize minusKIDS Childrenunder18 years Male (= 1) 37.675 0.844 2.540 0.887 0.431 9.239 0.363 0.938 0.737 0.495 39.479 0.838 2.663 0.980 0.613 10.638 0.369 1.138 0.922 0.488 Less than4 yearsgeneralschool 4-6 yearsgeneralschool 7-8 yearsgeneralschool; 1-2 years tradeschool More than8 yearsgeneralschool; some secondaryspecialtyschool 3 or moreyearstradeschool; 2 year degreeprogram Attestat(highschool) Completesecondaryspecialtyschool Some highereducation Completedhigheror more Publicsectorexperiencedefinedas age - numberof yearsnotworking at a publicsectorjob Experiencesquared Moved in last 5 years(= 1) PoliticalLoyalty GOOD GOOD: LEADER BAD BAD: LEADER GOODL X BADL in good activities(= 1) Participates Leaderin good activitiesor Komactiv(= 1) Participatesin bad activities(= 1) Leader in bad activities(= 1) Good leaderstimesbad leaders Privilege CAR CLIN SHOP SQMETERS Demographic AGE MARRIED ADULTS KIDS MALE 35 THE EARNINGS OF SOVIET WORKERS TABLE Al. -CONTINUED Blue Collar High Level Variable Description Mean Standard Deviation Mean Standard Deviation 165.779 90.996 162.037 88.451 5.012 38.918 38.918 0.010 0.009 0.096 0.018 0.047 0.007 0.022 0.003 0.027 0.005 0.095 0.057 0.007 0.021 0.024 0.114 0.160 0.052 0.179 0.044 0.432 4.949 8.973 0.098 0.094 0.294 0.132 0.213 0.081 0.148 0.054 0.163 0.072 0.293 0.232 0.086 0.145 0.155 0.318 0.367 0.222 0.383 0.205 4.967 42.137 42.137 0.005 0.007 0.169 0.017 0.142 0.015 0.036 0.007 0.080 0.014 0.076 0.151 0.003 0.008 0.174 0.022 0.017 0.017 0.015 0.025 0.484 3.811 8.199 0.071 0.082 0.375 0.129 0.349 0.123 0.185 0.082 0.271 0.116 0.265 0.358 0.058 0.092 0.380 0.147 0.129 0.129 0.123 0.157 0.262 0.235 0.033 0.440 0.424 0.180 0.108 0.127 0.039 0.311 0.333 0.194 0.006 0.107 0.035 0.041 0.041 0.048 0.003 0.043 0.039 0.077 0.310 0.183 0.198 0.198 0.214 0.054 0.203 0.194 0.008 0.161 0.041 0.058 0.066 0.044 0.005 0.069 0.102 0.092 0.368 0.198 0.233 0.248 0.205 0.071 0.254 0.304 0.043 0.003 0.059 0.002 0.203 0.054 0.235 0.047 0.030 0.003 0.112 0.025 0.172 0.058 0.315 0.157 JobCharacteristics EARNINGS LOG EARNINGS HOURS HRSWKLNP IND1 IND2 IND3 IND4 IND5 IND6 IND7 IND8 IND9 IND1O INDII IND12 IND13 IND14 IND15 IND16 IND17 IND18 IND19 IND20 Nominalgrossmonthlyearnings (in rubles) Naturallog of grossmonthlyearnings Predictedhoursworked Hoursworkedperweek chemical Manufacturing: Man: energy,metallurgy Man: machinebuilding Man: wood,buildingmaterial Man: light-nofood Man: light-food Man: other forestry Agriculture, Transportation Communications Construction Trade,social catering Material,technicalsupply Otherproductiveservices Municipaleconomy,housing culture Health-physical Education Culture& arts Science Credit,state,party Regions REG1 REG2 REG3 REG4 REG5 REG6 REG7 REG8 REG9 REG1O REGII REG12 REG13 REG14 REG15 REG16 Sample size Moscow Leningrad EuropeanRSFSR, Excluding Moscow-Leningrad Non-EuropeanRSFSR Kiev Odessa WestUkraine East Ukraine,excludingKiev-Odessa Balticcapitals Baltic,excludingcapitals Kishinev& Minsk Byelorussia& Moldavia,excluding capitals Transcaucasiancapitals Transcaucasian,excludingcapitals CentralAsian capitals CentralAsia, excludingcapitals 1349 591