Problems of Minimum Salary in Russia

Abstract

This article highlights the issue of low-level minimum wage in Russia which is not in line with the living wage and unable to guarantee an acceptable quality of life. We conducted an investigation of some legal aspects concerning the determination of minimum wage level, its increase, its accordance with the value of consumer basket and minimum assortment. This article’s main goal is to study the theoretical and legal aspects of the determination of a minimum wage in Russia including an investigation of its level dynamics and a minimum wage correlation with a living wage across the state. We used empirical research methods such as ranking, grouping, comparing in our investigation. We also used several statistical research methods (e.g. structural analysis, dynamics analysis, correlation and regression analysis). The statistical research methods helped to determine general factors of the minimum wage changes and their impact on common average income. We developed a correlation-regression model, where «y» is the size of average income per capita and variables «x1» is the size of the minimum wage, «x2» - the nominal size of the average wage, y-per capita income. Y=694,65+0,3213х1+0,7958х2. R=0.99. In the conclusion we state that the minimum wage does not exceed the cost of living, although the Constitution of the Russian Federation guarantees that it should not be less than the latter. Our investigation made it clear that a significant difference between the minimum wage, living wage and the average wage in this country leads to increased property differentiation of the population and a higher level of poverty.   

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About this article

Publication Date

18 December 2019

eBook ISBN

978-1-80296-948-1

Publisher

Future Academy

Volume

1

Print ISBN (optional)

-

Edition Number

1st Edition

Pages

1-161

Subjects

Business, management, behavioural management, macroeconomics, behavioural science, behavioural sales, behavioural marketing

Cite this article as:

Kookueva*, V. V., & Tsertseil, J. S. (2019). Problems of Minimum Salary in Russia. In Z. Bekirogullari, M. Y. Minas, & R. X. Thambusamy (Eds.), Business & Economics - BE-ci 2017, vol 1. European Proceedings of Multidisciplinary Sciences (pp. 66-79). Future Academy. https://doi.org/10.15405/epms.2017.06.8