Institutional effectiveness estimation of wage indexation

Authors

  • Светлана Владимировна Орехова Ural State University of Economics, 62/45, 8 Marta/Narodnoy Voli ul., Ekaterinburg, 620144, Russian Federation

DOI:

https://doi.org/10.21638/11701/spbu05.2016.308

Abstract

The article is aimed at studying the causes of differences between the legally established wage indexation and real labor practice of Russian companies. Based on the neoinstitutional economic analysis, the author selects and investigates the structural and comparative efficiency of indexation, systematizes methods of wage indexation in Russia and conducts an empirical analysis of indexation mechanism in 176 Russian mining and metallurgical companies. The analysis results allow the author to conclude that structural efficiency of wage indexation is low. The main reason of that is a lack of real enforcements
of this social guarantee. In the article the author suggests ways to overcome the institutional gaps and develop a unified mechanism for calculating wage indexation. Evaluation of the comparative effectiveness of the wage indexation institute in Russia shows that the institutional gaps in the establishment and implementation of this social guarantee are not random, but depends on the existence of alternative institutions and the specifics of Russian institutional environment. Refs 51. Figs 2. Tables 7.

Keywords:

institutional effectiveness, wage indexation, enforcement, human capital

Downloads

Download data is not yet available.
 

Author Biography

Светлана Владимировна Орехова, Ural State University of Economics, 62/45, 8 Marta/Narodnoy Voli ul., Ekaterinburg, 620144, Russian Federation

PhD of Economics, Associate Professor

References

Литература на русском языке

Авдашева С. Б., Крючкова П. В. Почему издержки на контроль растут, а законы соблюдаются все хуже: экономический анализ применения административного права в России // ЭКО. 2013. № 4. С. 119– 133.

Барсукова С. Ю. Неформальная экономика. Курс лекций. М.: Изд. Дом гос. ун-та — Высшей школы экономики, 2009. 354 с.

Вередюк О. В. Неустойчивость занятости: теоретические основы и оценка масштабов в России // Вестник Санкт-Петербургского университета. Серия 5. Экономика. 2013. Вып. 1. С. 5–32.

Вишневская Н. Т., Капелюшников Р. И. Инфорсмент трудового законодательства в России: динамика, охват, региональная дифференциация: препринт WP3/2007/02. М.: Изд. Дом Гос. ун-та — Высшей школы экономики, 2007. 80 с.

Вишневская Н. Т., Куликов О. В. Формирование заработной платы в России: роль отраслевых тарифных соглашений: препринт WP3/2008/04. Изд. Дом Гос. ун-та — Высшей школы экономики, 2008. 28 с.

Вольчик В. В., Кривошеева-Медянцева Д. Д. Институты, технологии и возрастающая отдача // Журнал институциональных исследований. 2015. Т. 7, № 1. С. 45–58.

Гимпельсон В., Капелюшников Р., Вишневская Н. Трудовое законодательство: анализ межрегиональных различий в практике правоприменения. 2008. URL: https://economics.hse.ru/data/794/492/1240/ Текст-для-юристов_26_11.doc (дата обращения: 29.04.2016).

Гимпельсон В., Капелюшников Р., Ратникова Т. Велики ли глаза у страха? Страх безработицы и гибкость заработной платы в России // Мониторинг общественного мнения, 2003. № 4 (66), июль-август. С. 44–58.

Заработная плата в России: эволюция и дифференциация / под ред. В. В. Гимпельсона, Р. И. Капелюшни- кова. М.: Изд. Дом ГУ ВШЭ, 2007. 575 с.

Жизненный цикл малого предприятия / под ред. А. А. Шамрая. М.: Фонд «Либеральная миссия», 2010. 244 с.

Институциональная экономика: новая институциональная экономическая теория / под ред. А. А. Аузана. М.: ИНФРА-М, 2010. 416 с.

Капелюшников Р. И., Лукьянова А. И. Трансформация человеческого капитала в российском обществе (на базе «Российского мониторинга экономического положения и здоровья населения»). М.: Фонд «Либеральная миссия», 2010. 196 с.

Клейнер Г. Б. Эволюция институциональных систем. М.: Наука, 2004. 240 с.

Крючкова П. В., Авдашева С. Б. Государственный и частный инфорсмент законодательства при риске ошибок I рода: выбор для России // Журнал новой экономической ассоциации. 2012. № 3 (15). С. 114–140.

Кузьминов Я. И., Бендукидзе К. А., Юдкевич М. М. Курс институциональной экономики: институты, сети, трансакционные издержки, контракты. М.: Изд. Дом ГУ ВШЭ, 2006. 426 с.

Нуреев Р. М. Россия после кризиса — эффект колеи // Журнал институциональных исследований. 2010. Т. 2, № 32. С. 7–26.

Олейник А. Н. «Жизнь по понятиям»: институциональный анализ повседневной жизни «российского простого человека» // Политические исследования. 2001. № 2. С .40–53.

Орехова С. В. Человеческий капитал как источник устойчивого конкурентного преимущества фирмы: проблемы применения // Современная конкуренция. 2015. № 1. С. 47–57.

Тамбовцев В. Л. Теории институциональных изменений. М.: ИНФРА-М, 2008. 144 с.

Шаститко А. Е. Новая институциональная экономическая теория. М.: Экономический факультет МГУ, ТЕИС, 2002. 591 с.

Ширяев И. М. Типологизация подходов к определению эффективности экономических институтов // Журнал институциональных исследований. 2014. Т. 6, № 2. С. 91–109.


References in Latin Alphabet

Acemoglu D., Robinson J. A. Why Nations Fail: the origins of power, prosperity, and poverty. New York: Crown Business, 2012. 544 р.

Booth A. The Economics of the Trade Union. Cambridge: Cambridge University Press, 1994. 312 р.

Braun A. R. Indexation of Wages and Salaries in Developed Economies // IMF Staff Papers. 1976. N 23. Р. 226– 271.

Brymer R., Molloy J., Gilbert B. Human Capital Pipelines: Competitive Implications of Repeated Interorganizational Hiring // Journal of Management. 2014. Vol. 40, N 2. P. 483–508.

Calmfors L., Johansson A. Nominal Wage Flexibility, Wage Indexation and Monetary Union // The Economic Journal. 2006. Vol. 116, N 508. P. 283–308.

Campbell B., Coff R., Kryscynski D. Rethinking Sustained Competitive Advantage from Human Capital // Academy of Management Review. 2012. Vol. 37, N 3, P. 376–395.

Cho Jang-Ok, Cooley T., Phaneuf L. Welfare Costs of Nominal Contracts // Review of Economic Studies. 1997. N 64. P. 465–484.

Chung R., Lee B. Byung-Hee, Lee W-J., Sohn B. C. Do Managers Withhold Good News from Labor Unions? // Management Science. 2016. Vol. 62, N 1. P. 46–68.

Christofides L., Peng A. Labor Contract Duration, Indexation, and Wage Adjustment: Interdependence and Inflation Propagation Mechanisms // Industrial Relations: A Journal of Economy and Society. 2010. Vol. 49, N 2. P. 226–247.

Cushen J., Thompson P. Financialization and value: why labour and the labour process still matter // Work, employment and society. 2016. Vol. 30, N 2. P. 353–365.

De Schryder S., Peersman G., Wauters J. Wage Indexation and the Monetary Police Regime. Munich: Center of Economic Studies and Info Institute, 2014. 24 р.

Dias D., Marques C., Martins F. A replication note on downward nominal and real wage rigidity: Survey evidence from European firms // Empirical Economics. 2015. Vol. 19, N 3. P. 91–105.

Dickens W. et al. How Wages Change: Micro Evidence from the International Wage Flexibility Project // Journal of Economic Perspectives. 2007. Vol. 21, N 2. P. 195–214.

Egels-Zandén N., Merk J. Private Regulation and Trade Union Rights: Why Codes of Conduct Have Limited Impact on Trade Union Rights // Journal of Business Ethics. 2014. Vol. 123, N 3. P. 461–473.

Frandsen B. R. The effects of collective bargaining rights on public employee compensation: evidence from teaches, free fighters, and police // ILR Review. 2016. Vol. 69, N 1. P. 84–112.

Hart R., Moutos T. Human capital, employment and bargaining. Cambridge: Cambridge University Press, 2008. 220 р.

Gesualfi-Fecteau D., Vallee G. Labor Inspection and Labor Standards enforcement in Quebec: Contingencies and intervention Strategies // Labor Law& Policy Journal. 2016. Vol. 37. P. 339–379.

Gittleman M., Kleine M. M. Wage effects of unionization and occupational licensing coverage in the United States // ILR Review. 2016. Vol. 69, N 1. P. 142–172.

Ichino A., Polo M., Rettore E. Are Judges Biased by Labor Market Conditions? // European Economic Review. 2003. Vol. 47, N 5. P. 913–944.

Lazear E. Job Security and Employment // The Quarterly Journal of Economics. 1990. Vol. 105, N 3. P. 699–726.

Laseen S. How High is the Private Gain from Wage Indexation? // The Scandinavian Journal of Economics. 2003. Vol. 105, issue 2. P. 247–254.

Li X., Wang X. L. A Model of China’s State Capitalism // The Hong Kong University of Science and Technology. 2012. March 15.

Carrillo J. A., Peersman G., Wauters J. Endogenous Wage Indexation and Aggregate Shocks. Banco De Mexico, Center of Economic Studies and Info Institute. Working Papers N 2013-19. Munich, 2013.

Minford P., Nowell E., Webb B. Nominal Contracting and Monetary Targets — Drifting into Indexation // The Economic Journal. 2003. Vol. 113, N 484. P. 65–100.

Musacchio A., Lazzarini S. G. Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond. Cambridge, MA: Harvard University Press, 2014. 368 р.

Sabirianova K. The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russia. EERC Working Paper N 2К/11. Moscow: EERC, 2011.

Smith J. Nominal Wage Rigidity in the United Kingdom // The Economic Journal. 2000. N 3. P. 176–195.

Stam R., Sieben I., Verbakel E., de Graaf P. M. Employment status and subjective well-being: the role of the social norm to work // Work, employment and society. 2016. Vol. 30, N 2. P. 307–330.

Vergeer R., Dhondt S., Kleinknecht A., Kraan K. Will ”structural reforms” of labour markets reduce productivity growth? A firm-level investigation // European Journal of Economics and Economic Policies: Intervention. 2015. Vol. 12, N 3. P. 300–317.

Wooldridge A. The visible hand. The Economist, 2012, January 21. URL: http://www.economist.com/node/21542931 (дата обращения: 05.05.2016).


Translation of references in Russian into English

Avdasheva S. B., Kriuchkova P. V. Pochemu izderzhki na kontrol’ rastut, a zakony sobliudaiutsia vse khuzhe: ekonomicheskii analiz primeneniia administrativnogo prava v Rossii [Why are the costs of a control grow, and the laws are observed worse: economic analysis of administrative law in Russia]. ECO, 2013, no. 4, pp. 119–133. (In Russian)

Barsukova S. Iu. Neformal’naia ekonomika. Kurs lektsii [The informal economy. Lecture course]. Moscow, Publ. House State Univ. — Vysshei shkoly ekonomiki, 2009. 354 p. (In Russian)

Verediuk O. V. Neustoichivost’ zaniatosti: teoreticheskie osnovy i otsenka masshtabov v Rossii [The instability of employment: the theoretical foundations and the assessment of the scope in Russia]. Vestnik of Saint Petersburg University. Series 5. Economics, 2013, issue 1, pp. 5–32. (In Russian)

Vishnevskaia N. T., Kapeliushnikov R. I. Inforsment trudovogo zakonodatel’stva v Rossii: dinamika, okhvat, regional’naia differentsiatsiia: preprint WP3/2007/02 [Enforcement of labor laws in Russia: dynamics, coverage, regional differentiation]. Moscow, Publ. House State Univ. — Vysshei shkoly ekonomiki, 2007. 80 p. (In Russian)

Vishnevskaia N. T., Kulikov O. V. Formirovanie zarabotnoi platy v Rossii: rol’ otraslevykh tarifnykh soglashenii: preprint WP3/2008/04 [Formation of wages in Russia: the role of of industry collective agreements]. Moscow, Publ. House State Univ. — Vysshei shkoly ekonomiki, 2008. 28 p. (In Russian)

Vol’chik V. V., Krivosheeva-Mediantseva D. D. Instituty, tekhnologii i vozrastaiushchaia otdacha [Institutions of technology and increasing returns]. Zhurnal institutsional’nykh issledovanii [Journal of Institutional Research], 2015, vol. 7, no. 1, pp. 45–58. (In Russian)

Gimpel’son V., Kapeliushnikov R., Vishnevskaia N. Trudovoe zakonodatel’stvo: analiz mezhregional’nykh razlichii v praktike pravoprimeneniia [Labor legislation: an analysis of regional disparities in enforcement practice], 2008. Available at: https://economics.hse.ru/data/794/492/1240/Tekst-dlia-iuristov_26_11.doc (accessed: 29.04.2016). (In Russian)

Gimpel’son V., Kapeliushnikov R., Ratnikova T. Veliki li glaza u strakha? Strakh bezrabotitsy i gibkost’ zarabotnoi platy v Rossii [Are big eyes in fear? The fear of unemployment and wage flexibility in Russia]. Monitoring obshchestvennogo mneniia [Monitoring of public opinion], 2003, no. 4(66), iiul’-avgust, pp. 44–58. (In Russian)

Zarabotnaia plata v Rossii: evoliutsiia i differentsiatsiia [Wages in Russia: Evolution and Differentiation]. Eds. V. V. Gimpel’sona, R. I. Kapeliushnikova. Moscow, Publ. House State Univ. — Vysshei shkoly ekonomiki, 2007. 575 p. (In Russian)

Zhiznennyi tsikl malogo predpriiatiia [The life cycle of a small business]. Ed. by A. A. Shamraia. Moscow, Fond “Liberal’naia missiia” Publ., 2010. 244 p. (In Russian)

Institutsional’naia ekonomika: novaia institutsional’naia ekonomicheskaia teoriia [Institutional Economics: A New Institutional Economics]. Ed. by A. A. Auzan. Moscow, INFRA-M Publ., 2010. 416 p. (In Russian)

Kapeliushnikov R. I., Luk’ianova A. I. Transformatsiia chelovecheskogo kapitala v rossiiskom obshchestve (na baze “Rossiiskogo monitoringa ekonomicheskogo polozheniia i zdorov’ia naseleniia”) [Transformation of human capital in the growing-Russian society (based on “Russian monitoring of the economic situation and public health”)]. Moscow, Fond “Liberal’naia missiia” Publ., 2010. 196 p. (In Russian)

Kleiner G. B. Evoliutsiia institutsional’nykh sistem [The evolution of the institutional systems]. Moscow, Nauka Publ., 2004. 240 p. (In Russian)

Kriuchkova P. V., Avdasheva S. B. Gosudarstvennyi i chastnyi inforsment zakonodatel’stva pri riske oshibok I roda: vybor dlia Rossii [Public and Private Enforcement of Law under the High risk of Type I errors: the Russian Case]. Zhurnal novoi ekonomicheskoi assotsiatsii [Journal of the New Economic Association], 2012, no. 3(15), pp. 114–140. (In Russian)

Kuz’minov Ia.I., Bendukidze K. A., Iudkevich M. M. Kurs institutsional’noi ekonomiki: instituty, seti, transaktsionnye izderzhki, kontrakty [The course of institutional economics: institutions, network, transaction costs, contracts]. Moscow, Publ. House State Univ. — Vysshei shkoly ekonomiki, 2006. 426 p. (In Russian)

Nureev R. M. Rossiia posle krizisa — effekt kolei [Russia after the crisis — the effect track]. Zhurnal institutsional’nykh issledovanii [Journal of Institutional Studies], 2010, vol. 2, no. 32, pp. 7–26. (In Russian)

Oleinik A. N. “Zhizn’ po poniatiiam”: institutsional’nyi analiz povsednevnoi zhizni “rossiiskogo prostogo cheloveka” [“Life by the rules”: institutional analysis of everyday life, “the Russian common man”]. Politicheskie issledovaniia [Political Studies], 2001, no. 2, pp. 40–53. (In Russian)

Orekhova S. V. Chelovecheskii kapital kak istochnik ustoichivogo konkurentnogo preimushchestva firmy: problemy primeneniia [Human capital as a source of sustainable competitive advantage of the company: the problems of application]. Sovremennaia konkurentsiia [Modern competition], 2015, no. 1, pp. 47–57. (In Russian)

Tambovtsev V. L. Teorii institutsional’nykh izmenenii [Theories of institutional change]. Moscow, INFRA-M Publ., 2008. 144 p. (In Russian)

Shastitko A. E. Novaia institutsional’naia ekonomicheskaia teoriia [New Institutional Economics]. Moscow, Ekonomicheskii fakul’tet MGU, TEIS Publ., 2002. 591p. (In Russian)

Shiriaev I. M. Tipologizatsiia podkhodov k opredeleniiu effektivnosti ekonomicheskikh institutov [Typology of approaches to determining the effectiveness of economic institutions]. Zhurnal institutsional’nykh issledovanii [Journal of Institutional Studies], 2014, vol. 6, no. 2, pp. 91–109. (In Russian)

Acemoglu D., Robinson J. A. Why Nations Fail: the origins of power, prosperity, and poverty. New York, Crown Business, 2012. 544 р.

Booth A. The Economics of the Trade Union. Cambridge: Cambridge University Press, 1994. 312 р.

Braun A. R. Indexation of Wages and Salaries in Developed Economies. IMF Staff Papers, 1976, no. 23, pp. 226– 271.

Brymer R., Molloy J., Gilbert B. Human Capital Pipelines: Competitive Implications of Repeated Interorganizational Hiring. Journal of Management, 2014, vol. 40, no. 2, pp. 483–508.

Calmfors L., Johansson A. Nominal Wage Flexibility, Wage Indexation and Monetary Union. The Economic Journal, 2006, vol. 116, no. 508, pp. 283–308.

Campbell B., Coff R., Kryscynski D. Rethinking Sustained Competitive Advantage from Human Capital. Academy of Management Review, 2012, vol. 37, no. 3, pp. 376–395.

Cho Jang-Ok, Cooley T., Phaneuf L. Welfare Costs of Nominal Contracts. Review of Economic Studies, 1997, no. 64, pp. 465–484.

Chung R., Lee B. Byung-Hee, Lee W-J., Sohn B. C. Do Managers Withhold Good News from Labor Unions? Management Science, 2016, vol. 62, no. 1, pp. 46–68.

Christofides L., Peng A. Labor Contract Duration, Indexation, and Wage Adjustment: Interdependence and Inflation Propagation Mechanisms. Industrial Relations: A Journal of Economy and Society, 2010, vol. 49, no. 2, pp. 226–247.

Cushen J., Thompson P. Financialization and value: why labour and the labour process still matter. Work, employment and society, 2016, vol. 30, no. 2, pp. 353–365.

De Schryder S., Peersman G., Wauters J. Wage Indexation and the Monetary Police Regime. Munich, Center of Economic Studies and Info Institute, 2014. 24 р.

Dias D., Marques C., Martins F. A replication note on downward nominal and real wage rigidity: Survey evidence from European firms. Empirical Economics, 2015, vol. 19, no. 3, pp. 91–105.

Dickens W. et al. How Wages Change: Micro Evidence from the International Wage Flexibility Project. Journal of Economic Perspectives, 2007, vol. 21, no. 2, pp. 195–214.

Egels-Zandén N., Merk J. Private Regulation and Trade Union Rights: Why Codes of Conduct Have Limited Impact on Trade Union Rights. Journal of Business Ethics, 2014, vol. 123, no. 3, pp. 461–473.

Frandsen B. R. The effects of collective bargaining rights on public employee compensation: evidence from teaches, free fighters, and police. ILR Review, 2016, vol. 69, no. 1, pp. 84–112.

Hart R., Moutos T. Human capital, employment and bargaining. Cambridge, Cambridge University Press, 2008. 220 р.

Gesualfi-Fecteau D., Vallee G. Labor Inspection and Labor Standards enforcement in Quebec: Contingencies and intervention Strategies. Labor Law& Policy Journal, 2016, vol. 37, pp. 339–379.

Gittleman M., Kleine M. M. Wage effects of unionization and occupational licensing coverage in the United States. ILR Review, 2016, vol. 69, no. 1, pp. 142–172.

Ichino A., Polo M., Rettore E. Are Judges Biased by Labor Market Conditions? European Economic Review, 2003, vol. 47, no. 5, pp. 913–944.

Lazear E. Job Security and Employment. The Quarterly Journal of Economics, 1990, vol. 105, no. 3, pp. 699–726. Laseen S. How High is the Private Gain from Wage Indexation? The Scandinavian Journal of Economics, 2003, vol. 105, issue 2, pp. 247–254.

Li X., Wang X. L. A Model of China’s State Capitalism. The Hong Kong University of Science and Technology, 2012. March 15.

Carrillo J. A., Peersman G., Wauters J. Endogenous Wage Indexation and Aggregate Shocks. Banco De Mexico, Center of Economic Studies and Info Institute. Working Papers no. 2013-19. Munich, 2013.

Minford P., Nowell E., Webb B. Nominal Contracting and Monetary Targets — Drifting into Indexation. The Economic Journal, 2003, vol. 113, no. 484, pp. 65–100.

Musacchio A., Lazzarini S. G. Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond. Cambridge, MA, Harvard University Press, 2014. 368 р.

Sabirianova K. The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russia. EERC Working Paper no. 2К/11. Moscow, EERC, 2011.

Smith J. Nominal Wage Rigidity in the United Kingdom. The Economic Journal, 2000, no. 3, pp. 176–195.

Stam R., Sieben I., Verbakel E., de Graaf P. M. Employment status and subjective well-being: the role of the social norm to work. Work, employment and society, 2016, Vol. 30, no. 2, pp. 307–330.

Vergeer R., Dhondt S., Kleinknecht A., Kraan K. Will ”structural reforms” of labour markets reduce productivity growth? A firm-level investigation. European Journal of Economics and Economic Policies: Intervention, 2015, vol. 12, no. 3, pp. 300–317.

Wooldridge A. The visible hand. The Economist, 2012, January 21. URL: http://www.economist.com/ node/21542931 (accessed: 05.05.2016).

Published

2016-09-30

How to Cite

Орехова, С. В. (2016). Institutional effectiveness estimation of wage indexation. St Petersburg University Journal of Economic Studies, (3), 130–154. https://doi.org/10.21638/11701/spbu05.2016.308

Issue

Section

Economics of firms and industrial management