Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-23T02:47:23.478Z Has data issue: false hasContentIssue false
  • English
  • Français

The rural/urban wage gap in the industrialisation of Russia, 1884–1910

Published online by Cambridge University Press:  01 April 2008

LEONID BORODKIN ,
BRIGITTE GRANVILLE  and
CAROL SCOTT LEONARD
LEONID BORODKIN
Affiliation:
Moscow Lomonossov State University, Russia
BRIGITTE GRANVILLE
Affiliation:
Queen Mary, University of London
CAROL SCOTT LEONARD
Affiliation:
St Antony's College, Oxford, [email protected]
Get access

Abstract

This article presents econometric evidence of integration in rural and urban wages in Russia's Northwest in the late tsarist era. Using the Autoregressive Distributed Lag (ARDL) approach to co-integration and error correction modelling, we show the flexibility of the rural wage in response to the lagged rural/urban wage ratio. Applying the model developed by Boyer and Hatton (1994) and Hatton and Williamson (1991a, 1991b, 1992), we show the similarity of the wage gap in northwest Russia in the late tsarist era to that during industrialisation in the US, England and Western Europe. Although our evidence does not necessarily describe countrywide trends, it does support for an industrialising region the more positive view of the degree and nature of late tsarist economic growth. Growth was not slowing down, and there is little evidence of constraints on migration by traditional agrarian institutions.

Type
Research Article
Information
European Review of Economic History , Volume 12 , Issue 1 , April 2008 , pp. 67 - 95
Copyright
Copyright © Cambridge University Press 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allen, R. C. (1994). Real incomes in the English-speaking world, 1879–1913. In Grantham, G. and MacKinnon, M. (eds.), Labour Market Evolution: The Economic History of Market Integration, Wage Flexibility and the Employment Relation. London and New York: Routledge, pp. 107–38.Google Scholar
Allen, R. C. (2003). Farm to Factory: A Reinterpretation of the Soviet Industrial Revolution. Princeton, NJ: Woodstock: Princeton University Press.CrossRefGoogle Scholar
Anfimov, A. M. (1980). Krest'ianskoe khoziaistvo evropeiskoi Rossii, 1881–1904. Moscow: Nauka.Google Scholar
Anfimov, A. M., Danilova, L. V. and Koroleva, S. I. (1993). Sistema gosudarstvennogo feodalizma v Rossii: sbornik statei. Moscow: Rossiiskaia Akademiia Nauk RF.Google Scholar
Barkai, H. (1973). The macro-economics of tsarist Russia in the industrialization era: monetary developments, the balance of payments and the gold standard. Journal of Economic History 33, 339–71.CrossRefGoogle Scholar
Bhagwati, J. and Ramaswammim, V. K. (1963). Domestic distortions, tariffs, and the theory of optimum subsidy. Journal of Political Economy 71, 44–50.CrossRefGoogle Scholar
Borodkin, L. I. (2006). O promyshlennom roste dorevoliutsionnoi Rossii. Ekonomicheskaia istoriia, Obozrenie 12, 184–200.Google Scholar
Borodkin, L. I. and Leonard, C. S. (2000). The rural urban wage gap in the industrialisation of Russia, 1885–1913. Oxford University, Department of Economics Working Paper no. 14.Google Scholar
Borodkin, L. I. and Valetov, T. I. (1999). Dinamika differentsiatsii v oplate truda rabochikh-tekstil'shchikov i metalistov v Rossii v period dorevoliutsionnoi industrializatsii. In Ekonomicheskaia istoriia. Ezhegodnik. Moscow: ROSSPEN, pp. 111–51.Google Scholar
Borodkin, L. I. and Valetov, T. I. (2001). Mikroanaliz dannykh o kvalifikatsii i dinamike zarabotnoi platy rabochikh-tekstil'shchikov tovarishchestva manufaktur N. N. Konshina (konets XIX-nachalo XX v.). In Ekonomicheskaia istoriia. Ezhegodnik. Moscow: ROSSPEN, pp. 351–88.Google Scholar
Bovykin, V. I. and Laverychev, A. (1984). Formirovanie finansovogo kapitala v Rossii: konets XIX v.–1908 g. Moscow: Nauka.Google Scholar
Bovykin, V. I. et al. (1989). Monopolisticheskii kapitalizm v Rossii: sbornik nauchnykh trudov. Moscow: Akademiia nauk SSSR In-t istorii SSSR.Google Scholar
Boyer, G. R. and Hatton, T. J. (1994). Regional labour market integration in England and Wales, 1850–1913. In Grantham, G. and MacKinnon, M. (eds.), Labour Market Evolution: The Economic History of Market Integration, Wage Flexibility and the Employment Relation. London and New York: Routledge, pp. 84–106.Google Scholar
Boyer, G. R. and Hatton, T. J. (1997). Migration and labour market integration in late nineteenth-century England and Wales. Economic History Review 50 (4), 697–734.CrossRefGoogle Scholar
Bradley, J. (1985). Muzhik and Muscovite: Urbanization in Late Imperial Russia. Berkeley, CA: University of California Press.CrossRefGoogle Scholar
Cheetham, R. J., Kelley, A. C. and Williamson, J. G. (1974). Demand, structural change, and the process of economic growth. In David, P. A. and Reder, M. W. (eds.), Nations and Households in Economic Growth: Essays in Honor of Moses Abramovitz. New York: Academic Press, pp. 239–63.Google Scholar
Crisp, O. (1976). Studies in the Russian Economy before 1914. London: Macmillan.CrossRefGoogle Scholar
Danilov, V. P. (1976). Ob istoricheskikh sud'bakh krest'ianskoi obshchiny v Rossii. Ezhegodnik po agrarnoi istorii, vyp. VI, Problemy istorii russkoi obshchiny, pp. 103–6.Google Scholar
De Vries, J. (1994). How did pre-industrial labour markets function? In Grantham, G. and MacKinnon, M. (eds.), Labour Market Evolution: The Economic History of Market Integration, Wage Flexibility and the Employment Relation. London and New York: Routledge, pp. 39–63.Google Scholar
Dolado, J. J., Jenkinson, T. J. and Sosvilla-Rivero, S. (1990). Co-integration and unit roots: a survey. Journal of Economic Surveys 4 (3), 249–73.CrossRefGoogle Scholar
Elliot, G., Rothenberg, T. J. and Stock, J. H. (1996). Efficient tests for an autoregressive unit root. Econometrica 64, 813–36.CrossRefGoogle Scholar
Fei, J. C. H. and Ranis, G. (1964). Development of the Labour Surplus Economy: theory and policy. Homewood, IL: R. D. Irwin.Google Scholar
Fei, J. C. H. and Ranis, G. (1997). Growth and Development from an Evolutionary Perspective. Oxford: Blackwell.Google Scholar
Gerschenkron, A. (1952). An economic history of Russia. Journal of Economic History 12, 146–59.CrossRefGoogle Scholar
Gerschenkron, A. (1962a). Economic Backwardness in Historical Perspective. Cambridge, MA: Harvard University Press.Google Scholar
Gerschenkron, A. (1962b). Russia: patterns and problems of economic development, 1861–1958. In Economic Backwardness in Historical Perspective: A Book of Essays. Cambridge, MA: Harvard University Press, pp. 119–51.Google Scholar
Goldsmith, R. (1961). The economic growth of tsarist Russia. Economic Development and Cultural Change 9, 441–75.CrossRefGoogle Scholar
Goodwin, B. K. and Grennes, T. J. (1998). Tsarist Russia and the world wheat market. Explorations in Economic History 35, 405–30.CrossRefGoogle Scholar
Granger, C. W. J. (1986). Developments in the study of co-integrated economic variables. Oxford Bulletin of Economics and Statistics, 213–228.CrossRefGoogle Scholar
Grantham, G. (1989). Agricultural supply during the Industrial Revolution: French evidence and European implications. Journal of Economic History 49, 43–72.CrossRefGoogle Scholar
Grantham, G. and Mackinnon, M. (eds.) (1994). Labour Market Evolution: The Economic History of Market Integration, Wage Flexibility, and the Employment Relation. London and New York: Routledge.CrossRefGoogle Scholar
Gregory, P. R. (1980). Grain marketings and peasant consumption, Russia, 1885–1913. Explorations in Economic History 17, 135–64.CrossRefGoogle Scholar
Gregory, P. R. (1982). Russian National Income, 1885–1913. Cambridge: Cambridge University Press.Google Scholar
Gregory, P. R. (1994). Before Command: An Economic History of Russia from Emancipation to the First Five-Year Plan. Princeton, NJ: Princeton University Press.CrossRefGoogle Scholar
Gregory, P. and Sailors, J. W. (1976). Russian monetary policy and industrialization, 1861–1913. Journal of Economic History 36, 836–51.CrossRefGoogle Scholar
Hamburg, G. M. (1978). The crisis in Russian agriculture: a comment. Slavic Review 37, 480–1.CrossRefGoogle Scholar
Harrison, M. (1990). The peasantry and industrialization. In Davies, R. W. (ed.), From Tsarism to the New Economic Policy. Ithaca, NY: Cornell University Press, pp. 104–24.CrossRefGoogle Scholar
Hatton, T. J. and Williamson, J. G. (1991a). Integrated and segmented labor markets: thinking in two sectors. Journal of Economic History 51, 413–25.CrossRefGoogle Scholar
Hatton, T. J. and Williamson, J. G. (1991b). Wage gaps between farm and city: Michigan in the 1890s. Explorations in Economic History 28, 381–408.CrossRefGoogle Scholar
Hatton, T. J. and Williamson, J. G. (1992). What explains wage gaps between farm and city? Exploring the Todaro model with American evidence, 1890–1941. Economic Development and Cultural Change 40, 267–94.CrossRefGoogle Scholar
Hunt, E. H. (1986). Industrialization and regional inequality: wages in Britain, 1760–1914. Journal of Economic History 46, 935–66.CrossRefGoogle Scholar
Hunt, E. H. and Pam, S. J. (1997). Prices and structural response in English agriculture, 1873–1896. Economic History Review 50, 477–505.CrossRefGoogle Scholar
Johansen, S. (1988). Statistical analysis of cointegrating vectors. Journal of Economic Dynamics and Control 12, pp. 231–54.CrossRefGoogle Scholar
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica 59, 1551–80.CrossRefGoogle Scholar
Johansen, S. (1995). Likelihood-based Inference in Cointegrated Vector Autoregressive Models. Oxford: Oxford University Press.CrossRefGoogle Scholar
Johansen, S. and Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics 52, pp. 169–210.CrossRefGoogle Scholar
Jones, D. W. (1975). Migration and urban unemployment in dualistic economic development. Chicago: Department of Geography, University of Chicago, Research Paper no. 165.Google Scholar
Kafengauz, L. B. and Varzar, V. E. (1929). Svod statisticheskikh dannykh o fabrichno-zavodskoi promyshlennosti s 1887 po 1926 goda [Microform]. Moscow: Gos. Izd-vo.Google Scholar
Kahan, A. (1967). Government policies and the industrialization of Russia. Journal of Economic History 27, 460–77.CrossRefGoogle Scholar
Kiryanov, Iu. I. (1987). Perekhod k massovoi politicheskoi bor'be: rabochii klass nakanune pervoi rossiiskoi revoliutsii. Moscow: Nauka.Google Scholar
Kiryanov, Iu. I and Volin, M. S. (1989). Robochii klass Rossii ot zarozhdeniia do nachala XX v. Moscow: Nauka.Google Scholar
Kotwal, A. and Ramswami, B. (1998). Economic reforms in agriculture and rural growth. Journal of Policy Reform 2, 369–402.CrossRefGoogle Scholar
Koval'chenko, I. D. and Milov, L. V. (1974). Vserossiiskii agrarnyi rynok, XVIII–nachalo XX v. Moscow: Nauka.Google Scholar
Koval'chenko, I. D., Selunskaia, N. B. and Litvakov, B. M. (1982). Sotsial'no-ekonomicheskii stroi pomeshchichego khoziaistva evropeiskoi Rossii v epokhu kapitalizma: istochniki i metody izucheniia. Moscow: Nauka.Google Scholar
Kravchenko, A. I. (2000). Antologiia sotsial'no-ekonomicheskoi mysli v Rossii: dorevoliutstionnyi period. St Petersburg: Russkii Khristianskii Gumanitarnyi Institut.Google Scholar
Kwiatkowski, D., Phillips, P. C. B. et al. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root: how sure are we that economic time series have a unit root? Journal of Econometrics 54, 159–78.CrossRefGoogle Scholar
Leonard, C. S. (1990). The Russian peasant commune under serfdom. In Bartlett, R. (ed.), Land Commune and Peasant Community in Russia: Communal Forms in Imperial and Early Soviet Society. New York: St Martin's Press, pp. 121–42.CrossRefGoogle Scholar
Leonard, C. S. (forthcoming). Agrarian Reform in Russia, 1861–2007. Cambridge: Cambridge University Press.Google Scholar
Lewin, M. (1990). The obshchina and the village. In Bartlett, R. (ed.), Land Commune and Peasant Community in Russia: Communal Forms in Imperial and Early Soviet Society. London: Macmillan, pp. 20–44.CrossRefGoogle Scholar
Lewis, W. A. (1954). Economic development with unlimited supplies of labour. Manchester School of Economics and Social Studies 20, 139–92.CrossRefGoogle Scholar
Margo, R. A. (2002). The North-South wage gap, before and after the Civil War. NBER Working Paper 8778.CrossRefGoogle Scholar
Mironov, B. N. (1991). Istoriia v tsifrakh. Leningrad: Nauka.Google Scholar
Mironov, B. N. (2006). From paradigm to myth: a response to B. V. Anan'ich. In Ekonomicheskaia istoriia ezhegodnik. Moscow: ROSSPEN, pp. 541–6.Google Scholar
Ng, S. and Perron, P. (2001). Lag length selection and the construction of unit root test with good size and power. Econometrica 69, 1519–54.CrossRefGoogle Scholar
Nifontov, A. S. (1974). Zernovoi priozvodstvo Rossii vo vtoroi polovine XIX veka. Moscow: Nauka.Google Scholar
Pazhitnov, K. A. (1924). Polozhenie rabochego klassa v Rossii. Leningrad: Nauka, v. 3.Google Scholar
Pesaran, M. H. and Shin, Y. (1995a). Long run structural modelling. DAE Working Paper, Department of Applied Economics, University of Cambridge.Google Scholar
Pesaran, M. H. and Shin, Y. (1995b). An autoregressive distributed lag modelling approach to cointegration analysis. DAE Working Paper 9514, Department of Applied Economics, University of Cambridge.Google Scholar
Pesaran, M. H., Shin, Y. and Smith, R. J. (1996). Testing for the existence of a long-run relationship. DAE Working Paper 9622, Department of Applied Economics, University of Cambridge.Google Scholar
Pesaran, M. H., Shin, Y. and Smith, R. J. (2001). Bounds testing approaches to the analysis of long-run relationship. Journal of Applied Econometrics 16, 289–326.CrossRefGoogle Scholar
Phillips, P. C. B. and Perron, P. (1988). Testing for a unit root in time series regression. Biometrika 75, 335–46.CrossRefGoogle Scholar
Radtsig, A. (1896). Vliane zheleznykh dorog na sel'skoe khoziastvo, promyshlennost’ i torgovliu. St Petersburg.Google Scholar
Rashin, A. G. (1940). Formirovanie promyshlennogo proletariata v Rossii: statistiko-ekonomicheskie ocherki. Moscow: Sotsial'no-Ekonomicheskoi Literaturoi.Google Scholar
Rashin, A. G. (1956). Naselenie Rossii za 100 let (1811–1913), Statisticheskii ocherki. Moscow: Gosudarstvennoe Statisticheskoe Izdatel'stvo.Google Scholar
Rosenbloom, J. L. (1990). One market or many? Labour market integration in the late nineteenth century United States. Journal of Economic History 50, 85–106.CrossRefGoogle Scholar
Rosenbloom, J. L. (1996). Was there a national labor market at the end of the nineteenth century? New evidence on earnings in manufacturing. Journal of Economic History 56, 626–56.CrossRefGoogle Scholar
Rossia. Materialy vysochaishe uchrezhdenoi 16 noiabria 1901 g. komissii po issledovaniiu voprosa o dvizhenii s 1861 po 1901 g. blagosostianiia sel'skogo naseleniia srednezemledel'cheskikh gubernii (1903). St Petersburg, ch. 1, tab. 19.Google Scholar
Rossia. Ministerstvo zemledeliia. Otdel sel'skoi ekonomiki i selkhokhoziastvennoi statistiki (1881–1919). . . .god v sel'skokhoziastvennom otnoshenii po otvetam, poluchennym ot khoziaev, St Petersburg (cited as MGZU SKh).Google Scholar
Rothenberg, W. B. (1988). The emergence of farm labour markets and the transformation of the rural economy: Massachusetts, 1750–1855. Journal of Economic History 48, 537–66.CrossRefGoogle Scholar
Rykachev, A. (1911). Tseny na khleb i na trud v S.-Petersburge za 58 let. Viestnik finansov 31.Google Scholar
Ryndziunskii, P. G. (1983). Krestiane i gorod v kapitalisticheskoi Rossii vtoroi poloviny XIX veka (Vzaimootnoshenie goroda i derevni v sotsial'no-ekonomicheskom stroem Rossii). Moscow: Nauka.Google Scholar
Schultz, T. W. (1945). Agriculture in an Unstable Economy. New York: McGraw-Hill Book Co.Google Scholar
Simms, J. Y. (1977). The crisis in Russian agriculture at the end of the nineteenth century: a different view. Slavic Review 36, 377–98.CrossRefGoogle Scholar
Simonova, M. S. (1971). Problema ‘oskudeniia’ Tsentra i ee rol’ v formirovanii agrarnoi politiki samoderzhaviia v 90-kh godakh XIX–nachale XX v. Problemy sotsial'no-ekonomicheskoi istorii Rossii, sbornik statei. Moscow: Nauka.Google Scholar
Stopani, A. M. (1916). Neftepromyshlennyi rabochii i ego biudget. Baku.Google Scholar
Strumilin, S. G. (1960). Ocherki ekonomicheskoi istorii Rossii. Moscow: Nauka.Google Scholar
Strumilin, S. G. (1963). Statistika i ekonomika, Izbrannye proizvedeniia v piati tomakh. Moscow: Nauka, v. 1.Google Scholar
Strumilin, S. G. (1964). Problemy ekonomiki truda, Izbrannye proizvedeniia v piati tomakh. Moscow: Nauka, v. 3.Google Scholar
Strumilin, S. G. (1967). Istoriia chernoi metallurgii v SSSR. Moscow: Nauka.Google Scholar
Svod otchetov fabrichnykh inspektorov za 1904 g. (1905). St Petersburg.Google Scholar
Tekhnicheskoe opisanie Kolomenskogo mashinostroitel'nogo zavoda, 1863–1903 gg. (1903). Kolomna.Google Scholar
Todaro, M. P. (1969). A model of labour migration and urban unemployment in less developed countries. American Economic Review 59, 138–48.Google Scholar
Todaro, M. P. (1976). Internal Migration in Developing Countries: A Review of Theory, Evidence, Methodology and Research Priorities. Geneva: International Labour Office of the UN.Google Scholar
Tugan-Baranovsky, M. I. (1922). Russkaia fabrika. Moscow.Google Scholar
Unger, K. (2005). Regional economic development and Mexican out-migration. NBER Working Paper W11432.CrossRefGoogle Scholar
Vainshtein, A. L. (1960). Narodnoe bogatstvo i narodnokhoziastvennoe nakopleniepredrevoliutsionnoi Rossii. Moscow: Gosstatizdat.Google Scholar
Vainshtein, A. L. (1967). Statistika narodnogo bogatstva. Moscow: Gosstatizdat.Google Scholar
Wheatcroft, S. G. (1990). Agriculture. In Davies, R. W. (ed.), From Tsarism to the New Economic Policy: Continuity and Change in the Economy of the USSR. Ithaca, NY: Cornell University Press, pp. 79–103.CrossRefGoogle Scholar
Williamson, J. G. (1987). Did English factor markets fail during the Industrial Revolution? Oxford Economic Papers, NS 39, 641–78.CrossRefGoogle Scholar
Williamson, J. G. (1990). Coping with City Growth During the British Industrial Revolution. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Williamson, J. G. (1994). Leaving the farm to go to the city: did they leave quickly enough? In James, J. A., Hartwell, M. and Thomas, M. (eds.), Capitalism in Context: Essays on Economic Development and Cultural Change in Honor of R. M. Hartwell. Chicago: University of Chicago Press, pp. 159–82.Google Scholar