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December 2017 (published: 20.12.2017)
Number 4(31)
Home > Issue > Economic policy and functioning
the Russian labor market in the conditions of crisis
Alpatov G.Е., Bortnikova E.G.
The article is devoted to the problem of low unemployment in the conditions of the recession of the Russian economy. The analysis of points of view on the causes of this discrepancy was carried out. The general conclusion is the flexibility of the Russian labor market, high elasticity of wages for unemployment. A number of authors perceive the property of reducing wages as a positive characteristic, preserving employment and growth potential. In fact, unemployment takes the form of unpaid labor. The article contains figures that characterize the impoverishment of the population, underpayments to workers, part-time work without compensation. Employment becomes fake, does not ensure the reproduction of labor. The increase in the number of diseases of the able-bodied population in these years is shown in comparison with the declining unemployment. The article presents views on ways to reduce unemployment. The key way is to reduce wages.But the main methodological error of these conclusions is the autonomous examination of the labor market, which leads to a false choice of tools. The labor market is connected with the market of goods through the consumed part of the disposable income of workers. A reduction in wages and a corresponding reduction in income mean a reduction in demand in the market of goods, which in turn reduces the demand for labor and causes unemployment. The article proposes measures of state policy on expansion of aggregate demand, reduction of savings leaks and activation of trade unions in order to increase the prosperity of the employed population and push economic growth.
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Keywords: labor market, cyclical unemployment, trade unions, economic policy in the labor market, economic growth.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 331.1+338.124
Economic policy and functioning
the Russian labor market in the conditions of crisis
The article is devoted to the problem of low unemployment in the conditions of the recession of the Russian economy. The analysis of points of view on the causes of this discrepancy was carried out. The general conclusion is the flexibility of the Russian labor market, high elasticity of wages for unemployment. A number of authors perceive the property of reducing wages as a positive characteristic, preserving employment and growth potential. In fact, unemployment takes the form of unpaid labor. The article contains figures that characterize the impoverishment of the population, underpayments to workers, part-time work without compensation. Employment becomes fake, does not ensure the reproduction of labor. The increase in the number of diseases of the able-bodied population in these years is shown in comparison with the declining unemployment. The article presents views on ways to reduce unemployment. The key way is to reduce wages.But the main methodological error of these conclusions is the autonomous examination of the labor market, which leads to a false choice of tools. The labor market is connected with the market of goods through the consumed part of the disposable income of workers. A reduction in wages and a corresponding reduction in income mean a reduction in demand in the market of goods, which in turn reduces the demand for labor and causes unemployment. The article proposes measures of state policy on expansion of aggregate demand, reduction of savings leaks and activation of trade unions in order to increase the prosperity of the employed population and push economic growth.
Read the full article
Keywords: labor market, cyclical unemployment, trade unions, economic policy in the labor market, economic growth.
DOI 10.17586/2310-1172-2017-10-4-74-83