Wage growth in Russia: opportunities and consequences

Abstract

The paper assesses the potential for increasing the minimum wage and the average wage in the Russian economy, the wages paid to employees, the profit of enterprises and the capital investments of enterprises. Based on the study of the research results published in periodicals, the socio-economic consequences of increasing the minimum wage and increasing the average salary of employees in the state and non-state sectors of the economy are systematized. When comparing the wages and profits of employees, it is possible to measure the potential for wage growth. The author attributes this dimension to the increment of knowledge. The results of the study show the possibilities of state authorities to improve the tax system in terms of a differentiated approach to the taxation of profits aimed at direct investment or personal enrichment. Change in the income tax should both stimulate the investment activity of business owners, and limit the desire for personal enrichment. The Russian economy has potential to increase the average wage twofold.