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The Structure of Employees’ Remuneration in the Labour Market of Ural Region: Impact of Firm’s Motives on Optimal Contract

Author: Ivan A. Borisov, Sr. lecturer of Political Economy Dept; Aleksey A. Ilyukhin, Cand. Sc. (Ec.), Prof. of Political Economy Dept; Luybov A. Andreeva, 4th year student of Economics Dept;

Abstract: By means of regression analysis the paper investigates the factors influencing firms’ choice of remuneration structure in the labour market of Ural region. The authors theoretically justify the hypothesis that allows identifying firm’s motives behind employees’ remuneration on the basis of wages structure. The research proved that firms tend to demonstrate the motive of shifting risks to employees as well as the motive of incentivizing particular categories of them. In addition, sufficient differences in approaches to remuneration between industries were found.

Key words: labour economics; microeconomics; contract theory; incentivizing; remuneration; wages; labour market.