Regularities of Formation of the Labour Reimbursement Institute in the Market Economy

Abstract

The article considers theoretical issues of formation of the labour reimbursement institute in the market economy. It proves that functioning of the labour reimbursement institute identifies proportions of distribution of the total amount of expenditures on labour reimbursement between different professional and qualification groups of workers. Also, functioning of the labour reimbursement institute significantly influences proportions of distribution of income between owners of the means of production and hired labour, although, to a big extent, this institute is adapted, on the one hand, to the existing in the society forms of resolution of contradictions, inherent in means of production ownership relations, and, on the other hand, to the situation in a relevant labour market segment. However, the labour reimbursement institute itself significantly influences realisation of interests of employees and employers. The article states that wages in the modern economy should be understood as an incomplete labour reimbursement – the entrepreneur spends on an employee not only the sum of wages, but also uses other forms of resource provision of the processes of acquisition of certain benefits by the enterprise employees.

Keywords

• labour reimbursement
• wages
• income
• hired labour
• economic interests
• distribution
• additional expenditures
• labour reimbursement fund
• aggregate expenditures
• labour process
• labour reimbursement institute