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Wage Adjustment Policies In Russian Firms

Author

Listed:
  • Ksenia V. Rozhkova

    (National Research University Higher School of Economics)

  • Sergey Yu. Roshchin

    (National Research University Higher School of Economics)

  • Sergey A. Solntsev

    (National Research University Higher School of Economics)

Abstract

Wage adjustments for employees are a reaction mechanism to changing market conditions and form a significant part of pay policy. Though various attempts to explore wage levels and wage differentials have been made, wage adjustment policies remain an understudied topic. This paper analyses the determinants of wage adjustments based on data from Russian enterprises 2015–17. The analysis is based on detailed data from an employer survey which covers more than 5,000 firms in both the public and private sector. The study adopts probit models to identify the reasons which determine wage revisions, depending on internal employer characteristics and external labour market conditions. The results are in line with previous research on the topic (Bayo-Moriones et al., 2016) and suggest that both internal and external factors influence wage adjustments. A wage adjustment is a reflection of the ability to pay meaning that revisions are often made by successful firms with high employee turnover. Institutional frameworks, especially trade union activity, affects the firm’s decision to adjust wages despite the general opinion on the insignificance of unions in Russia. This study contributes to the limited literature by analysing the determinants of wage policies depending on the firm’s characteristics. This is the first study of its kind based on extensive Russian data.

Suggested Citation

  • Ksenia V. Rozhkova & Sergey Yu. Roshchin & Sergey A. Solntsev, 2018. "Wage Adjustment Policies In Russian Firms," HSE Working papers WP BRP 205/EC/2018, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:205/ec/2018
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    References listed on IDEAS

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    Cited by:

    1. Croucher, Richard & Morrison, Claudio & Rizov, Marian, 2023. "Pay and employee intrapreneurialism in Russia, 1994–2015: A longitudinal study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(2), pages 246-260.

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    More about this item

    Keywords

    Russia; wage adjustment; pay policy; pay settlement; trade union;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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