Labor is an underestimated factor of production in many segments of the Russian labor market. In the new private sector, the institutional environment promotes the hypertrophied power of employers over workers, who are sometimes completely right. In the budget sector of the economy, the state-monopsonist understates the earnings of doctors, teachers, scientists and culture workers who do not have the potential for protest activity. The low quality of institutions provokes profound inequalities, exacerbating the problem of poverty. Interregional leveling of earnings is hampered by low territorial mobility of workers; the scale of labor discrimination, especially age and gender, is great. Inequality is strengthened by the current system of salary formation in the country, as well as corruption, which helps officials, rent-seeking and representatives of large businesses to lobby their interests in power.
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