Course Hero Logo

62 in 2005 2007 the living wage for russia has not

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 36 - 38 out of 135 pages.

62In 2005-2007 the living wage for Russia has not been counted by Rosstat, that’s why we have data only for theperiod of 2000-2004.63Vyzhutovich V. Interview with S.Glaziev (deputy of the Russian parliament – Duma) and A.Nechaev (formerminister of economy) // Rossiyskaya gazeta,4331, 03.04.2007.64These data were obtained during sample enterprise surveys. These surveys have been conducted since 2000.Earlier official data concerning workers distribution by wages is not available and we cannot calculate the share ofworkers with monthly wage less than 60% of the average level.
37especially among low paid workers. For those who at their primary job receive wages below thesubsistence minimum, taking an additional job helps to increase their income. As a result, suchworkers can be considered as a low paid (at the primary job), but not as working poor.The persistence of a large share of low paid workers in Russia can be explained byseveral factors: government policy of inflation control; relatively high share of workplaces forlow-skilled workers; increased share of able-bodied population coming from families withrestrictions on full productive employment, formed as a result of weak development of the socialservices sector.65It is notable that the largest share of workers receiving wages below 60% of the averagewage in a branch is observed not only in the lowest-paid branches (agriculture, health and socialcare), but also in most highly paid ones (finance and banking, communication, real estate) (SeeAppendix: Figures 3.2.33).Unfortunately the official statistical data does not allow to estimate the share of low paidworkers by the ILO criterion in the Russian regions. We only have data on the share of workersreceiving wages below average regional wage in 2000-2004. These figures do not reflectconsiderable inter-regional differences and dynamics during that period: 60-70% of Russianworkers had wages less than the average wage in the regions where they worked.3)Russian researchers also use such criterion of low wages, as50% of median wage. From2000 till 2005 the share of workers receiving wages below this level fell from 24.9% to 18.9%.66In any case among researchers and experts there is no single clear explanation of thephenomenon of poverty and inequality reduction in Russia after 2001. Among the mostsignificant factors are economic growth (rouble devaluation, import substitution, the decrease ofwage arrears and unemployment, working hours increase, etc.). Labour demand grew andexpanded not only because of raw materials prices going up, but also because of someinstitutional reforms (minimum wage increase and corresponding increase in wage rates of theUniform wage rate schedule).673.2.4. Minimum wageThe ratio of minimum wage to the average wage in the Russian economy was 9.3% in2006. During 1990-2000s this share varied from 5 to 12%. The ratio of minimum wage to theable-bodied population subsistence minimum was less stable. Since the beginning of economicgrowth in 2000 the purchasing power of the minimum wage rate has gradually grown, althoughvery slowly and it is still much less than 1 (0.25 in 2006) (See Appendix: Figure 3.2.34). Thisgrowth was a result of the improved economic situation in Russia and of the Government policyof gradual adjustment of the minimum wage to the subsistence minimum. The latter means thatthe Government raises the minimum wage faster than the subsistence minimum grows, although

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 135 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
NoProfessor
Tags
Economics, Unemployment, International Labour Organization

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture