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Minimum wage and minimum wages in Russia

Author

Listed:
  • Lukiyanova, A.

    (National Research University Higher School of Economics, Moscow, Russia)

Abstract

The author studies recent changes in the minimum wage policy in Russia. The year 2018 has become a turning point in the history of the minimum wage in Russia. The "bite" of the minimum wage has increased significantly making it binding for a large portion of workers. The legislation remains controversial with regard to the "northern" coefficients increasing the regulatory risks and threatening to undermine the system of minimum wage bargaining at the regional level due to the crowding-out effect. The minimum wage is currently set at a "reasonable" level concerning the national average and median wages. Direct costs of rising the minimum wage are small. However, the effect varies significantly across the regions - about one third of Russian regions will face a sharp increase in the share of workers at or below the minimum wage. The main financial burden of the minimum wage increase will be borne by regional and municipal budgets.

Suggested Citation

  • Lukiyanova, A., 2018. "Minimum wage and minimum wages in Russia," Journal of the New Economic Association, New Economic Association, vol. 37(1), pages 176-186.
    • Handle: RePEc:nea:journl:y:2018:i:37:p:176-186
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    References listed on IDEAS

    as
    1. Catherine SAGET, 2008. "Fixing minimum wage levels in developing countries: Common failures and remedies," International Labour Review, International Labour Organization, vol. 147(1), pages 25-42, March.
    2. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    3. David Neumark, 2017. "The Employment Effects of Minimum Wages: Some Questions We Need to Answer," NBER Working Papers 23584, National Bureau of Economic Research, Inc.
    4. Anna Lukiyanova, 2016. "Regional Variation In The Minimum Wage Policies In The Russian Federation (2007-2015)," Public administration issues, Higher School of Economics, issue 1, pages 81-102.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    minimum wage; labor market institutions; wage inequality; Russia;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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