THE RELATIONSHIP BETWEEN PAY AND LABOR PRODUCTIVITY IN THE MODERN RUSSIAN ECONOMY

Abstract

The level of labor productivity is traditionally considered one of the most important indicators of the efficiency of both individual enterprises and the country's economy as a whole. Wages are one of the key elements of employee motivation and attracting high–level specialists. The article notes that wages and labor productivity are two key factors affecting the efficiency and development of the economy as a whole. The study confirms the existence of a direct relationship between these indicators: an increase in the level of wages stimulates labor productivity growth, but, however, only at the level of the Russian Federation. Significant dependence was not revealed either at the level of the subject of the Russian Federation – the Saratov region, or at the level of some sectors of the economy. The absence of a significant relationship between pay and labor productivity is also noted by such scientists as E.T. Gurvich and E.S. Vakulenko.

The authors conclude that labor productivity in Russia is higher than the average in the global economy, but it lags behind the advanced countries at times. Within the country, it is found that some industries demonstrate a stronger relationship between pay and labor productivity, while in other industries this relationship may be less pronounced. The study highlights the importance of developing and applying policies aimed at stimulating wages and increasing labor productivity in the Russian economy. The results and conclusions of the article can be useful for formulating economic policy aimed at improving working conditions, increasing wages and general economic development in Russia