Labor Market Features in the Russian North: Employment, Wages and the Role of Northern Allowances

Abstract

This article focuses on the labor market in the Russian northern regions. The labor market in the Russian North was formed due to the state policy of the no longer existing state, aimed at the active attraction of migrants from other territories for the industrial development of the country. This policy of attracting migrant labor in the state was implemented mainly through the creation of the institution of wages, which provided additional northern payments to the salary, designed to compensate for the discomfort of living and working conditions in the North. This led to an increase in employment in the North. The research goal is to study the formation and development of the wage institution, as well as to determine the impact of wages on employment in modern conditions. The article presents the history of formation of the institution of wages in the Russian North. The dynamics of labour market indicators is given, the change in the ratio of wages in the North is presented, based on official statistical data over the past 15 years. The results of the study show that the northern territories have problems of the labor market that have arisen in recent decades: high levels of unemployment, reduced employment, and wages, once being a significant factor, had a positive impact on employment, but today contribute to the decline in the economic attractiveness of life in the North.

Keywords

• employment
• wage
• institutional approach