Wage-setting Mechanisms in the Russian Industry
The paper examines a specific model of wage-setting evolved in Russia under transition. Using new survey data author reveals paradoxical characteristics of wage-setting mechanisms at Russian industrial enterprises: very high union and collective agreement coverage; nearly unilateral control of managers over wage determination; close correlation between earnings and enterprises' performance; voluntary utilization of wage standards established by the state. The special section explores effects of fulfilling a new provision stipulated for by the recently adopted Labor Code to raise minimum wage to the subsistence minimum level. The author concludes that wage-setting in the Russian labor market is at odds with a textbook competitive model and poorly fits into many other sophisticated theoretical schemes (such as labor-managed firms, bargaining models etc.).
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References listed on IDEAS
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- Simon Clarke, 2002. "Market and Institutional Determinants of Wage Differentiation in Russia," ILR Review, Cornell University, ILR School, vol. 55(4), pages 628-648, July.
- Commander, Simon & Liberman, Leonid & Yemtsov, Ruslan, 1993. "Wage and employment decisions in the Russian economy : an analysis of developments in 1992," Policy Research Working Paper Series 1205, The World Bank.
- Shakhnovich Ruvim & Yudashkina Galina, 2001. "Wage-Setting and Employment Behavior of Enterprises during the Period of Economic Transition," EERC Working Paper Series 01-04e, EERC Research Network, Russia and CIS.
- Peter J. Luke & Mark E. Schaffer, 1999.
"Wage Determination in Russia: An Econometric Investigation,"
CERT Discussion Papers
9908, Centre for Economic Reform and Transformation, Heriot Watt University.
- Luke, Peter L. & Schaffer, Mark E, 2000. "Wage Determination in Russia: An Econometric Investigation," IZA Discussion Papers 143, Institute for the Study of Labor (IZA).
- Peter J. Luke & Mark E. Schaffer, 2000. "Wage Determination in Russia: An Econometric Investigation," William Davidson Institute Working Papers Series 295, William Davidson Institute at the University of Michigan.
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