We use a new independent survey of 4000 Russian households (the Russian Longitudinal Monitoring Survey or RLMS) to study their saving behavior. The RLMS household saving rate (12%) is less than half the official figure (29%). Despite the massive changes of the transition, the Russian household saving rate of 1994 cannot be shown to be different from that of 1976. The patterns of Russian household saving differ from international experience: Its paradoxical U-shaped saving-age relationship may be explained by the dramatic deterioration of life expectancies of middle-aged Russians.

The authors conduct tests to gain insight into the empirical relevance of the proposition that factor prices converge as trade expands. The test results support the proposition of factor price convergence in sixteen OECD countries during the 1961-84 period. Regression analyses support the view that trade openness has been the most significant factor influencing wage variations. This paper also distinguishes between "high wage" and "low wage" countries. Pooled ordinary least squares estimates indicate that Canada, the United States, Denmark, West Germany, the Netherlands, and Sweden are "high wage" and Japan, New Zealand, Austria, Belgium, Finland, France, Ireland, Norway, Switzerland, and the United Kingdom are "low wage" countries. Further results using the Within estimations technique are provided.