WAGE ADJUSTMENT POLICIES IN RUSSIAN FIRMS

Ksenia Rozhkova (), Sergey Roshchin () and Sergey Solntsev
Additional contact information
Ksenia Rozhkova: National Research University Higher School of Economics
Sergey Roshchin: National Research University Higher School of Economics

HSE Working papers from 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.

Keywords: Russia; wage adjustment; pay policy; pay settlement; trade union (search for similar items in EconPapers)
JEL-codes: D22 J01 J31 J33 J51 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2018
New Economics Papers: this item is included in nep-cis, nep-dcm, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in WP BRP Series: Economics / EC, December 2018, pages 1-27

Downloads: (external link)
https://wp.hse.ru/data/2018/12/10/1145009423/205EC2018.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:205/ec/2018

Access Statistics for this paper

More papers in HSE Working papers from National Research University Higher School of Economics
Bibliographic data for series maintained by Shamil Abdulaev () and Shamil Abdulaev ().