Factors Affecting on the Wage of Employees in Small and Medium Enterprises in Russian Regions
Factors Affecting on the Wage of Employees in Small and Medium Enterprises in Russian Regions

Author(s): Iuliia Pinkovetskaia
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: SMEs; wageof employees; regression model; regions; Russia
Summary/Abstract: Purpose:The aim of the study was to assess the impact on the wages of employees in small and medium enterprises(SMEs) of factors that characterize the socio-economic situation of the regions where are located these enterprises. We discussed influence such factorsas unemployment rate, gross regional product, incomes of residents of the region and budget expenditures of the region. In order, to ensure a comparison wage in SMEs located in different regions, the calculations are based on relative indicators. In addition, were studied the ratio between wage of SMEs employees and the subsistence minimum legally established in the regions. Design/methodology/approach: The study used official statistical data Federal service of state statistics Russia in 2015. We used information on the actual average monthly wage of SMEs employees and indicators, which characterize social-economic position in each of the 82 Russian regions. So,in total we used 574 empirical observation. The research methods of regression and correlation analysis were used to analyze the aforementioned data. The paper offers two models: multiple nonlinear regression on the spatial data, which describes the impact of factors on wages, and function, characterizing ratio between wage of employees in SMEs and the subsistence minimum, established in the regions. Findings:The paper proves the relationship between the average monthly wage of employees of SMEs and factors such as the share of unemployment persons in the economically active population, average monthly income per one inhabitant, average monthly gross regional product per one inhabitant, and averagemonthly budget expenditure of region per one inhabitant. The paper shows that wage increases with the decrease of the first factor and the growth each of the other three factors. Presented ratio of average wage of employees SMEs and subsistence minimum in regions. Identified regions with insufficient level of wages in SMEs. Research/practical implications:The obtained new information and tools to assess the level of average wages in SMEs can be used in research on entrepreneurship, also for justification of programs for the development of this sector of the economy at the Federal, regional and municipal levels. The study provide regions authorities with information on the directions of wage increases in accordance with the Federal strategy for SMEs development thatinvolves an increase of twice the employees’wages. Prospects for further research are related to more complex assessment analysis of the monthly wage of SMEs employees, engaged in various types of economic activity. Originality/value: New knowledge has been gained about the factors that influence the wages of SMEs in the regions, ratios wage and subsistence minimum and also wage differentiation in SMEs by region. Our study offers a unique view on the SMEs wage system and we contribute to the existing knowledge on economy of entrepreneurship.

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