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Regular version of the site

65%

of Russian companies are freezing their employees’ salaries during the economic crisis.

It is rare for Russian companies to reduce wages in nominal terms; even during crises and falling revenue, businesses try not to use salary cuts as a way to achieve cost reductions. The reason is that employers do not want to lose employees. However, freezing wages at a certain level ultimately leads to decreased earnings in real terms, as they are gradually 'eaten' away by inflation.

By way of comparison, in the US and UK, the probability of freezing wages is much lower at 5-20%. In the EU, wage freezes are found most commonly in Portugal, where 58% of companies use this practice.

These data are presented in a report by Alexander Larin, senior lecturer in the Faculty of Economics at the HSE Nizhny Novgorod campus. The report is called 'Downward Nominal Wage Rigidity: Attributable to Labour Unions or the Voluntary Decision of Firms?' More information on how wage freezes affect the labour market can be found on the OPEC.ru website (in Russian).

See also:

‘Cognitive Skills Are not Sufficient to Be Successful in Labour Market’

This September, HSE – St. Petersburg hosted the 3rd IZA/HSE University Workshop on Skills and Preferences and Labor Market Outcomes in Post-Transition and Emerging Economies. HSE News Service spoke with Professor Lehmann, co-organizer of the workshop, about human capital, the importance of cognitive and noncognitive skills, and the challenges empirical labour economists encounter when studying these issues in post-transition and emerging economies.

Relatively Unhappy: How Strict Labour Laws Reduce Workers’ Happiness

Temporary or informally employed people are less satisfied with their lives than those with a permanent job. The most apparent differences can be seen in countries with strict labour laws. Tatiana Karabchuk and Natalia Soboleva investigated the legislative impact on the social well-being of employed populations in European countries and Russia.

Trapped by a Flexible Schedule: The Pain and Price of Freelance Work

A flexible schedule is one of the main advantages of freelance work. But don’t rejoice in your freedom just yet: self-employment often disrupts the balance between life and work and takes up more time than traditional office work. HSE University researchers Denis Strebkov and Andrey Shevchuk investigated the downsides of independent work.

Work That Kills: The Danger of Nonstandard Working Schedules

More than 64% of employed Russians work evenings, nights or weekends, and this is one of the highest figures among European countries. Andrei Shevchuk and Anna Krasilnikova were the first to study the extent of nonstandard working hours in Russia and its impact on work-life balance.

Personality at Work

The way one thinks, feels and acts in certain circumstances can determine career opportunities in terms of employment and pay. For the first time in Russia, Ksenia Rozhkova has examined the effect of personality characteristics on employment.

Gender Inequality in Academia

In Russia, women earn about 70% of what men earn in wages. In the academic sector, this gap is smaller. However, although women make up a majority at universities, wage gaps between the two genders still persist. To find out why this is the case, IQ.HSE spoke with Victor Rudakov, Research Fellow at the Institute of Institutional Studies.

What Drives Innovation in Russian Companies

As part of the Management session of the XX April International Conference, Carl F. Fey from Aalto University School of Business, Finland, presented his paper on Facilitating Innovation in Companies in Russia: The Role of Organizational Culture. In his talk, Professor Fey spoke about the results of three studies he has been conducting with his team.

Graduate Salary Expectations in Russia

Students of engineering and economics, undergraduates of state universities, high performers, young people from wealthier families, and those working part-time while at university tend to expect higher salaries upon graduation.

Russians with Degrees: Where Are They Employed?

Russia has a problem with the under-utilisation of education. Almost 30% of employees with university degrees report no connection whatsoever between their training and current occupation, according to Elena Varshavskaya's paper 'Where and in what jobs highly educated Russians work.'

Employers Increasingly Find Employees Online

The internet has changed how people approach job hunting and recruitment. Employment websites and social networks are now competing with personal connections as the key channel for offering and finding jobs and have replaced most other channels, according to Sergey Roshchin, Sergei Solntsev and student at the HSE ICEF Dmitry Vasilyev's paper 'The Evolution of Job Hunting and Recruitment in the Internet Age'.