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Compensation and the Quality of the Labor Force in Russia

  • SOCIAL ASPECTS
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Studies on Russian Economic Development Aims and scope

Abstract—

The article is devoted to the study of the qualification properties of the Russian labor market, the analysis of the level of wages in various sectors of the economy, including in terms of the ratio of industry wages in Russia and the United States. As part of the analysis, types of activities are distinguished, with relatively lower wages and lower labor productivity, confirms the validity of the thesis of insufficient labor efficiency in conditions of low wages. Eliminating disproportions in the wage levels of workers in the sectors with the lowest level of labor productivity (compared to the proportions emerging for these sectors in developed countries) will have the greatest impact on increasing labor productivity in the economy as a whole. Due to this factor, it is possible to ensure an increase in total labor productivity by 17.9% in the next five years.

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Notes

  1. Here and below, the calculations consider the traditional concept of labor productivity, calculated as the quotient of dividing gross value added at constant prices by labor inputs (average annual number of employees).

  2. The indicator of the quality of the workplace was the value of the annual earnings of the employee at the main place of work.

  3. It was calculated as the sum of the categories “drivers and machinists of mobile equipment,” “sellers,” “unskilled workers,” methodology [11].

  4. The hidden payroll was calculated as the difference between the total payroll (Rosstat, the structure of monetary incomes of the population) and the payroll of employees of organizations, obtained by multiplying the average number of employees of organizations by their average monthly nominal accrued wages (in terms of the year).

  5. E. S. Uzyakova, “Informal employment and its impact on household income and economic growth,” Stud. Russ. Econ. Dev. 33, 716–722 (2022).

  6. For calculations, we used WIOD statistics for 2014 and the OECP database (oecd.org).

  7. Calculated using the exchange rates of the national currencies of the countries in question.

  8. For the calculation, the statistics of the National Bureau of Statistics of China were used (taking into account the share of employment in the urban private and public sectors, which was 56% of the total number of employed in 2018), Rosstat of the Russian Federation.

  9. Calculated as a quotient of dividing gross output by employed; Rosstat data, input–output tables for 2017.

  10. Percentage increase in earnings with an increase in the duration of education by one year. In other words, it is a modified version of the standard indicator of relative earnings for certain educational groups.

  11. In the structure of the employed by the level of education, they include the following categories of workers: employed with a secondary general education or a basic general education, or those without a basic general education.

  12. It is calculated as the quotient of dividing the number of hours worked per year in all types of work for the production of goods and services by type of economic activity by the average annual number of employees.

  13. If it is impossible to measure the level of labor productivity of unskilled workers, we will use the ratio for labor productivity of workers in the informal sector. In our opinion, the level of productivity of informal workers should roughly match (or exceed) the productivity of low-skilled workers, and the number of people employed in the informal sector in 2020 was almost equal to the number of low-skilled workers (19.0% compared to 19.7%).

  14. The score was obtained in the work: E. S. Uzyakova, “Informal employment and its impact on household income and economic growth,” Stud. Russ. Econ. Dev. 33, 716–722 (2022).

  15. M. N. Uzyakov, “Usage efficiency of primary resources as an indicator of technological development: A retrospective analysis and forecast,” Stud. Russ. Econ. Dev. 22, 111–121 (2011).

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  1. Institute of Economic Forecasting, Russian Academy of Sciences, 117418, Moscow, Russia

    E. S. Uzyakova

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Uzyakova, E.S. Compensation and the Quality of the Labor Force in Russia. Stud. Russ. Econ. Dev. 34, 507–515 (2023). https://doi.org/10.1134/S1075700723040159

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