Socio-economic determinants of salary

<p>The topic of salary and factors that can influence it is very acute nowadays. Salary &ndash; is one of the key indicators of individual, company, country wealth. Especially the topic of salary became popular after financial crisis in 2008, when many companies started to cut bonuses, social benefits and perks for employees, and the salary started to be the most important factor when choosing job. There is difference in salary level between countries and people from all over the world are interested how to increase the salary.</p><p>Many economists try to analyze the factors that influence salary; most of them analyze one or two factors (i.e. there are studies on gender differences in salary, influence of experience and education on salary). The author of this paper is trying to find and evaluate the impact of bunch of socio-economic factors on salary, by using data from the Russia Longitudinal Monitoring Survey of HSE (RLMS-HSE) for time period 2009-2012. The author is looking at following socio-economic factors:&nbsp; gender, education, age, industry, region of living, state of health, height, marital status,&nbsp; presence of subordinates, smoking, alcohol drinking, knowledge of foreign languages, sport activity, body type and nationality.</p><p>In order to check the adequacy and validity of the factors the author creates an econometric model with all factors-variables and makes several tests. Some of the hypotheses that were brought forward in this paper were proved to be true (i.e. the gender, age, education level, knowledge of foreign language influences salary level).&nbsp; The surprising fact was that height of person affects the salary, probably that&rsquo;s because high people feel more confident and bosses appreciate their confidence and give comparably higher salary. Also one surprising fact was that marital status doesn&rsquo;t influence salary much.&nbsp; The interpretation and impact of all analyzed socio-economic factors are provided in the paper.</p><p>At the end of diploma paper the author provides the ideal portrait of rich person (who is gaining much salary) in Russia. All the results that are in the paper seem to be adequate with reality. &nbsp;&nbsp;</p>