Analysis of Incentive Contracts in Academia in Terms of Increase of Competitiveness of Russian Universities

In this paper, we will focus on labour relations in the higher education system and on the contractual relations arising in this market. We will examine the flaws of such relationships and economic mechanisms for dealing with such defects. In particular, one of such methods is an incentive contract, which received in Russia the formal embodiment by the provision of new forms of employment relationships in the form of an Effective contract. Scientific novelty of the work is justified by the fact that most of the studies on contractual relations has been written on developed markets. In this work we applie the concept of Effective contract analysis of contractual relations in an emerging market in terms of large-scale reforms and the availability depends on the previous path of development. The study will help to understand how well the potential of an Effective contract is realized in the context of the need to improve the positions of Russian universities on the international level and to identify which determinants of professors work have a significant impact on salary levels in different types of universities. The empirical results confirm previous studies on the topic of indicators of professors' activity, which have a significant influence on wages.