Obukhovich N.V., Kuznetsova K.I.Published in:
Russian Journal of Labor Economics
– Volume 5, Number 1 (January-March 2018)

JEL classification: J30, J31, J33

Keywords: Keitz index, minimum wage, purchasing power of minimum wage


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Abstract:

The article is devoted to the study of regional differences in the possibilities of reproduction of the labor force, estimated by the ratio of minimum and average wages (Keitz index), the minimum wage and the subsistence minimum of the able-bodied population (purchasing power of the minimum wage). The official publications of the Federal state statistics service and the materials of the reference legal system "ConsultantPlus" have been used as the data sources. The indicators were calculated on the basis of data from September 2007 to September 2017 for the Russian Federation and the regions of the Great Urals. The minimum wage is presented in the calculation in several variants: the Federal minimum wage is uniform and adjusted for regional factors and percentages; actually set the regional minimum wage. The results of the study showed that the variation of the regional minimum wage helps to reduce the territorial differences in the possibilities of reproduction of the labor force, but provides the low-paid workers consumption within the limits of poverty.

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