Experts Explain Why Russians Have Low Wages
OREANDA-NEWS More than 70% of Russians are paid below the national average (47,657 rubles in April, according to Rosstat). This situation is due to a specific model of the labor market: low wages with low unemployment, RBC reports.
The relevant choice was made by the Russian authorities back in the 1990s in order to avoid a social explosion. As a result, even in crisis periods unemployment does not grow, but wages are reduced.
At the same time, experts emphasize that low wages determine weak consumer demand, and this hinders the development of the Russian economy as a whole. In turn, weak GDP growth deprives hope of a substantial increase in wages in the medium term.