Increase in the labor productivity as a condition for raising wages
Abstract. The most important factor in the effective operation of any business entity is the rational use of resources, including labor. Labor productivity characterizes the degree of return, the effectiveness of the use of labor resources in the production process as one of the important factors of production (land, labor, capital). In the market economy, the growth of this indicator is not the main goal of the employer, and for this reason, the level of wages is not always directly dependent on the level of the labor productivity. With a decrease in labor costs due to an increase in the labor productivity, but inefficient use of other factors, it is possible to obtain uncompetitive products that do not bring profit. Therefore, the employer is interested not only in the labor productivity, but also in the efficiency of all factors in general. The subject of the study is the prevailing relationship between the indicators of the labor productivity and wages in the Russian Federation in dynamics. The research purpose is to study the monetary incomes of the population, their structure, wages and factors affecting its level (capital-labor ratio, investment in human capital, etc.). The study used analysis, synthesis, generalization, grouping, dynamics, comparison, tabular method, method of induction, deduction. The studied phenomena are considered in their interrelation. According to the results of the study, Russia`s lag behind the advanced countries was established both in terms of the labor productivity and wages. A sharp differentiation of wages by the activity type was revealed, in the regions, a significant part of the population has average per capita incomes below the subsistence level. The values of the coefficient of funds, the Gini coefficient remain high. In the monetary income of the population, income from the labor activity does not exceed 60%, the share of social payments is large. The current low level of income and wages is a consequence of the strict regulation of wages at enterprises in pre-market conditions. In various sectors of the economy, the value of the indicator of the labor productivity is understood differently (for example, in trade, consumer services, transport, etc.). Without a real increase in wages at organizations, without taking into account the growth in the labor productivity, it is impossible to solve the task of a sharp decrease in the proportion of the population with cash incomes below the subsistence level. It should also be taken into account that in the conditions of market relations, the employer is interested not only in the efficient use of labor resources, but in general the competitiveness of products, which is provided by other factors of production.
Keywords: labor productivity, wages, incomes below the subsistence level, coefficient of funds, Gini coefficient, capital-labor ratio, capital productivity, GDP, investment, wage indexation
Highlights:
♦ wages occupy a large place in the basis of the social status of the population. Acting as a payment for labor, it is designed to stimulate high-performance labor, which largely depends on the correct organization of the labor motivation system at the enterprise;
♦ in connection with the transition to market relations, state regulation of wages has been weakened, primarily at enterprises that are not related to the public sector. The level of wages at enterprises is low. At the same time, due to lack of funds, employers do not index the amount of wages provided for by law;
♦ the gap between high-paid and low-paid workers is large (more than 14 times), a significant part of the income is concentrated in 40% of the population. All this requires strengthening the participation of the state in the regulation of remuneration issues.
Nikolay Z. Zotikov - I.N. Ulyanov Chuvash State University, Cheboksary, Russia