Minimum size of wage and its differentiation
Research Article
How to Cite
Toksanbaeva M.S. Minimum size of wage and its differentiation. Population. 2020. Vol. 23. No. 4. P. 40-49. DOI: https://doi.org/10.19181/population.2020.23.4.4 (in Russ.).
Abstract
Raising minimum wage can lead to such a contraction in its differentiation that weakens the stimulating function. The article raises the question of the influence on this function of the minimum wage growth to the level of the subsistence minimum of an able-bodied person. According to Rosstat information, the decrease in the differences in earnings of workers depending on their qualifications began in 2017 and continued in 2019. The R/P10% ratio also declined but was still too high. The study of the causes of this phenomenon is based on the hypothesis that, first of all, it is rooted in the earnings differentiation by type of economic activity (industry). For the analysis, industries were selected in which the key professional groups consist of the most qualified personnel, namely highly qualified specialists and skilled workers. Contraction of inter-qualification differentiation below the reasonable standards took place in industries with wages not higher than the average for all employees. This process began in 2017, when the minimum wage had not yet reached the subsistence level. In key occupational groups in some high-wage industries the differences under consideration reached excessively high values. And in industries with low wages, the differentiation by key groups slightly increased in comparison with 2017. This can be explained by weakening of labor incentives and an attempt to restore them after this weakening. This confirms that ensuring of the reproductive function of payment for labor should be consistent with the effectiveness of the stimulating function. However, without reducing the differences in earnings by industry, achieving such consistency is not possible.
Keywords:
wages, differentiation, reproductive and stimulating functions, minimum wages, qualifications, type of economic activity
References
1. Migranova L. A. Zarabotnaya plata v Rossii i v mire: sravnitel'nyj analiz [Payment for work in Russia and across the world: a comparative analysis]. Narodonaselenie [Population]. 2018. No. 3. P. 52-67. DOI: 10.26653/1561-7785-2018-21-3-04 (in Russ.)
2. Soboleva I. V. Vosproizvodstvennaya funktsiya zarabotnoj platy i trudovaya motivaysiya v sovremenoj Rossii [Reproduction function of wages and work motivation in modern Russia]. Voprosy politicheskoj ekonomii [Issues of Political Economy]. 2019. No. 3. P 95-104. (in Russ.)
3. Mozhina M. A. Raspredelitel'nyye otnosheniya: dohody i potrebleniye naseleniya [Distributive Relations: Incomes and Consumption of Population]. Moscow. Gaynullin. 2001. 304 p. ISBN 5-94013¬005-4. (in Russ.)
4. Toksanbaeva M. S. Differenciatsiya zarabotnoj platy v kontekste stimulirovaniya truda [Wage differentiation in the context of labor incentives]. Narodonaselenie [Population]. 2019. No. 3. P. 116-129. DOI: 10.24411/1561-7785-2019-00031 (in Russ.)
5. Sobolev E. N. Oplata truda v rossijskoj ekonomike: tendentsii i problemy [Remuneration of Labor in the Russian Economy: Trends and Challenges]. Vestnik Instituta ekonomiki Rossijskoj akademii nauk [The Bulletin of the Institute of Economics of the Russian Academy of Sciences]. 2018. No. 2. P. 122-141. (in Russ.)
6. Buzgalin A. V. Zakat neoliberalizma (k 200-letiyu Karla Marksa) [The decline of neo-liberalism (to the 200th birth anniversary of Karl Marx)]. Voprosy ekonomiki [Issues of Economics]. 2018. No. 2. P. 122-141. (in Russ.)
7. Graeber D. Bredovaya rabota. Traktat o rasprostranenii bessmyslennogo truda [Bullshit Jobs: A Theory]. Moscow. Ad Marginem Press. 2020. 601 p. ISBN 978-5-91103-541-9. (in Russ.)
2. Soboleva I. V. Vosproizvodstvennaya funktsiya zarabotnoj platy i trudovaya motivaysiya v sovremenoj Rossii [Reproduction function of wages and work motivation in modern Russia]. Voprosy politicheskoj ekonomii [Issues of Political Economy]. 2019. No. 3. P 95-104. (in Russ.)
3. Mozhina M. A. Raspredelitel'nyye otnosheniya: dohody i potrebleniye naseleniya [Distributive Relations: Incomes and Consumption of Population]. Moscow. Gaynullin. 2001. 304 p. ISBN 5-94013¬005-4. (in Russ.)
4. Toksanbaeva M. S. Differenciatsiya zarabotnoj platy v kontekste stimulirovaniya truda [Wage differentiation in the context of labor incentives]. Narodonaselenie [Population]. 2019. No. 3. P. 116-129. DOI: 10.24411/1561-7785-2019-00031 (in Russ.)
5. Sobolev E. N. Oplata truda v rossijskoj ekonomike: tendentsii i problemy [Remuneration of Labor in the Russian Economy: Trends and Challenges]. Vestnik Instituta ekonomiki Rossijskoj akademii nauk [The Bulletin of the Institute of Economics of the Russian Academy of Sciences]. 2018. No. 2. P. 122-141. (in Russ.)
6. Buzgalin A. V. Zakat neoliberalizma (k 200-letiyu Karla Marksa) [The decline of neo-liberalism (to the 200th birth anniversary of Karl Marx)]. Voprosy ekonomiki [Issues of Economics]. 2018. No. 2. P. 122-141. (in Russ.)
7. Graeber D. Bredovaya rabota. Traktat o rasprostranenii bessmyslennogo truda [Bullshit Jobs: A Theory]. Moscow. Ad Marginem Press. 2020. 601 p. ISBN 978-5-91103-541-9. (in Russ.)
Article
Received: 21.09.2020
Accepted: 11.12.2020
Citation Formats
Other cite formats:
APA
Toksanbaeva, M. S. (2020). Minimum size of wage and its differentiation. Population, 23(4), 40-49. https://doi.org/10.19181/population.2020.23.4.4
Section
QUALITY, STANDARDS AND CONDITIONS OF LIFE