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Productivity and Labor Compensation in Russia: How to Cope with Statistical Illusions

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  • R. Kapeliushnikov

Abstract

The paper provides a thorough critique of conventional wisdom that in the Russian economy of the 2000s labor compensation has been increasing much faster than productivity. It reveals a number of wrong implicit assumptions that lead to this statistical illusion. The most important of them are: 1) substitution of producer real wage for consumer real wage; 2) using data on wages instead of data on total labor compensation. Relying upon both official statistics and findings of business surveys the paper concludes that in fact 2004—2007 were a period of sharp decrease rather than of sharp increase in real unit labor cost.

Suggested Citation

  • R. Kapeliushnikov, 2009. "Productivity and Labor Compensation in Russia: How to Cope with Statistical Illusions," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 4.
    • Handle: RePEc:nos:voprec:y:2009:id:860
    DOI: 10.32609/0042-8736-2009-4-59-79
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