We examine the implications for estimates of wage relativities and inequality when countries experience wage arrears on a substantial scale, using the Russian labour market as a test case. The increase in wage inequality in Russia during its transition process has far exceeded the increase in...

The increase in wage inequality in Russia during its transition process has far exceeded the increase in wage dispersion observed in other European countries undergoing transition. Russia also has an extremely large incidence of wage arrears. We analyse to what extent wage arrears affect the...