Regional Aspect of the Dynamics of Wages and Labor Productivity in Russia

Abstract

The national economy of Russia is characterized by a high level of differentiation of labor productivity and wages. During the period under review, 2000–2017, there is no significant reduction of the gap in the average wage level. Leading regions are the entities of the Russian Federation specializing in mining. The same group of territories also includes regions located in difficult climatic conditions. The geographical factor determines the high state-regulated wage level. Low-wage regions are territories whose specialization is determined by social sectors. The absence of highly effective types of economic activity determines the unattractiveness of territories in terms of labor. Low wages form negative trends in regional labor markets, reduce the demand for education, and do not stimulate the growth of investments in new technologies. And in general it leads to low labor efficiency, low labor productivity.