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Minimum wage as a factor of increasing the living standards and life quality

Zhmachinskii V.I. Volga State University of Water Transport, Nizhny Novgorod, Russian Federation ( economcaf@vgavt-nn.ru )

Cherneva R.I. Volga State University of Water Transport, Nizhny Novgorod, Russian Federation ( renden@mail.ru )

Journal: Economic Analysis: Theory and Practice, #8, 2017

Subject The article addresses minimum wage as a tool for State regulation of life quality and standards of living of the population.
Objectives Our aim is to find solutions to urgent problems in the sphere of remuneration of labor, poverty alleviation and ensuring social stability through establishing a minimum wage at the level of a reasonable subsistence minimum.
Methods The study draws on systems analysis as a scientific method to identify and exploit available opportunities for improving the level and quality of life by fixing the minimum wage.
Results The paper formulates main principles and criteria for establishing the minimum wage as a the basic social State guarantee. It is crucial to establish an objective indicator that reflects the real purchasing power (the consumer budget) and is calculated on the basis of a subsistence level, to create a clear link between the minimum wage and the consumer basket, and to expand the latter, as currently it is extremely small to live a decent life.
Conclusions and Relevance We provide a rationale for a model and type of system for establishing a minimum wage and formulate tasks to regulate it. The paper proves that it is possible to raise the consumer budget and minimum wage, which is linked to it.


Living standard evaluation technique

Zhmachinskii V.I. Volga State Academy of Water Transport, Nizhny Novgorod, Russian Federation ( renden@mail.ru )

Cherneva R.I. Volga State Academy of Water Transport, Nizhny Novgorod, Russian Federation ( Cherneva@vgfvt-nn.ru )

Journal: Economic Analysis: Theory and Practice, #9, 2016

Importance Living standard evaluation is a priority in poverty reduction. Equivalence scales enable to compare living standards of families of various structure. One the ways to build equivalence scales is the expert method.
Objectives Poverty is one of the most acute social problems. It is an attribute of any economic system; difference is only in scale. Each State faces the problem of poverty assessment as the world community promulgates poverty alleviation as a responsibility of all countries without exception.
Methods At various stages of development, poverty is interpreted differently, therefore, evaluation methods also vary. It is impossible to apply accumulated global experience without taking into account the specifics of our country. Hence, it is necessary to systematize the existing theoretical and methodological approaches to poverty investigation, adapt them to specific conditions or offer new methods that are adequate to the present stage of development of the State.
Results Depending on the concept of poverty evaluation, there may be differences in findings leading to problems when developing measures of the national social policy. To assess living standards depending on the size and composition of families, equivalence scales can be used. To adapt the scales to domestic economy realities, we offer using the expert method of evaluation.
Conclusions The national social policy should focus on the general population. The offered technique for measuring the living standard may help face up to challenges.


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