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Regional Variation In The Minimum Wage Policies In The Russian Federation (2007-2015)

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Abstract

Since September 2007, Russian regions have received an opportunity to set regional minimum wages (RMW) based on negotiations between trade unions, employers, and local governments. This reform has radically changed the system of minimum wages by increasing the role of collective bargaining at the regional level. The existing legislation gives the regions substantial freedom to decide on the form of tripartite agreement, the size of RMW and the inclusion of different groups of employees. The reform gave rise to a plenty of institutional experiments at the regional level. Over the last eight years, more than 4/5 of the Russian regions got experience with the RMW. In this paper, we study the evolution of this labor market institution in 2007-2015 focusing on the regional variation of minimum wage policies. We demonstrate that the most important differences between regions are related to the following features: setting the uniform RMW or different RMWs for the budgetary and non-budgetary sectors; setting the RMW via general tripartite agreement or via special agreement on the RMW; agreeing the RMW with the regional subsistence level.

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  • 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.
    • Handle: RePEc:nos:vgmu00:2016:i:1:p:81-102
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    1. Boeri, Tito, 2012. "Setting the minimum wage," Labour Economics, Elsevier, vol. 19(3), pages 281-290.
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    1. 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.
    2. Grishina, E. & Kuznetsova, P., 2018. "Minimum Wage as a Tool to Reduce Poverty: Expected Consequences of the Reform," Journal of the New Economic Association, New Economic Association, vol. 40(4), pages 137-156.
    3. Gimpelson, Vladimir & Lukiyanova, Anna & Sharunina, Anna, 2019. "Economics and Politics of the Public-Private Wage Gap (The Case of Russia)," IZA Discussion Papers 12247, Institute of Labor Economics (IZA).

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