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Case Study on Mechanism of Wage Formation in Russia
This research was conducted in order to highlight an outstanding behaviour of Russian wage/labour market. In particular, this paper stresses the fact of the wage formation mechanism’s flexibility in Russia. With the help of the regression analysis this research shows and proves that the components of wage have lost their initial meaning. Ideally, the biggest share of the wage must refer to the tarrif-payment, while bonuses and premiums are expected to play motivation role. However, the data of the paper shows that the share of bonuses can reach up to 97% of the whole wage. Above mentioned flexibility of the wage formation mechanism exists as a result of such unusual wage’s components’ proportion. This research also discovers influence of the factors which can hypothetically affect each of the wage’s components. Examined factors include: gender, marital status, age, education level, work experience, category of the worker, his/her position in the company and a few others. Moreover, Russian wage/labour market has many other specific characteristics, which you can find by reading this research.