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Economic Analysis: Theory and Practice
 

Wage arrears in the Russian labor market: What do aggregated and microdata say?

Vol. 16, Iss. 3, MARCH 2017

PDF  Article PDF Version

Received: 10 August 2016

Received in revised form: 25 November 2016

Accepted: 23 January 2017

Available online: 29 March 2017

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: J30, J39

Pages: 428-443

https://doi.org/10.24891/ea.16.3.428

Kireev V.E. Orel State University, Orel, Russian Federation
kireevve@bk.ru

Subject The article addresses wage arrears during the 2010–2014 inter-crisis period.
Objectives The purpose of the study is to determine whether the wage arrears problem is dangerous for the Russian labor market, and what groups of employees and sectors are susceptible to this negative phenomenon to a greater extent.
Methods The methodology draws on methods of descriptive statistics and regression analysis based on panel data and a probit regression model.
Results The study revealed that according to Rosstat, wage arrears are minimal and fluctuate over time. The biggest share of payroll indebtedness is in agriculture, the smallest – in the public sector. Employees with low wages, working in State or private Russian organizations and having specialized secondary education are exposed to non-payment of wages to a greater extent. Single men working in the informal sector often receive less wages. In addition, residents of regional centers are more vulnerable to non-payment of wages due to the scale of the labor market.
Conclusions and Relevance At the present stage, wage arrears in the Russian labor market do not exceed 1%. It is fair to say that this phenomenon is natural for the market economy.

Keywords: arrears, wage, labor market

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