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Earnings Differences In Russia by region and gender

Earnings differences by region
Earnings differences by gender


The inequality in earnings and incomes is found in all the countries and all economic systems. This problem is global.
However, in Russia the problem of earnings differences is especially serious. And since the problem is partly due to wage discrimination, in order to solve it an effort must be done by the Russian society.
Earnings differences by region
Comparison of earnings in different regions of Russia is as follows1:
Moscow Vladivostok Yekaterinburg Krasnodar Novosibirsk Perm Rostov-on-Don Samara St. Petersburg
100% 55% 52% 45% 52% 48% 49% 53% 84%

Average indexes of the monthly income including the base salary and actually received bonuses were used for this analysis. The level of incomes in Moscow, used as comparison base, was estimated by an expert method. St.-Petersburg has come nearest to the payment level in Moscow (84 % in comparison with the capital). Other regions’ salaries and bonuses are twice less than in Moscow.
To a certain extent, regional differences in earnings are caused by the differences in the living costs. Therefore, the inequality of earnings in various regions of Russia will be less, when compared against the living costs of the regions in question.
Earnings differences by gender
In general, men are in a better position than women, when it comes to the practical possibilities to get worthy wages. This is according to the opinion of 90% of respondents of the research conducted by VCIOM2.
Another finding of the research reveals that the monthly average wages of women make only a little more than 65 % of monthly average wages of men. Even in the budgetary economic sector with generally low level of a payment, the wages of men are higher than those of women, as men occupy the majority of supervising posts (e.g., in the system of public health services men prevail among the head physicians, leading experts, etc).
The situation which has developed in the society leads to the low expectation of women - on the average 55 % of the managers participating in the research have agreed with the statement that women agree on lower payment2.
Gender distinctions in earnings level exist not only in branches with "men's" profile of work. Women, for example, prevail in such branches as communication (67,7 %), the design organizations (61,7 %), trade (75,3 %), public catering sphere (75,6 %), operations with the real estate (61,5 %), the general commercial activity (79,9 %), public health services (85,6 %), education (82,3 %), culture (75,7 %), science (58 %), public associations (56,5 %), but even there the payment of their work remains lower, than that of men. Excess is observed only in two branches: retail trade (10 %) and management (14 %). Men dominate in the government, in the economic, financial, scientific elite of a society. In spite of the fact that an educational level among the occupied men is on average lower than among the occupied women, they are concentrated in branches with traditionally high payment: in the heavy industry, mining operations, civil works, transport2.
It is necessary to underline that the earnings inequality problem exists all over the world. Irrespective of the economy and the development of public relations, practically everywhere the incomes of women are less than those of men. The average world indicator of the relation of the wages of women to the wages of men is 65 %.
According to United Nations statistics, the minimum parity is observed in developing countries: Egypt, Pakistan, Mexico, Chile, etc. Women receive less than half of the level of incomes of men in the countries with the developed economy, such as Japan, Belgium, Italy, and Spain. On the post-Soviet territory and in East Europe the parity is better: Estonia, Slovakia, Moldova, Lithuania, Poland, Slovenia — wages of women account for 62-67% of those of men, which is comparable to a situation in Russia. The best situation can be observed in Finland, Denmark, and Sweden— here the incomes of women reach more than 70% of the incomes of men. For example, in Sweden the wages of women are on average 80% of the salary of men.
However, speaking about Russia, the existing gender inequality is connected with the labour legislation (for example, with restrictions of employment of women in harmful working conditions), discrimination practices and the stereotypes accepted in a society. The careers of women are also interrupted by the no-charge/not insurance periods (holiday on care of the child, time invalidity on care of patients, etc). Quite often women and men begin with identical educational level, but further women lag behind on qualification on two-three categories, which has to do with the period of birth and education of children. The difference in earnings might result from this difference in qualification.
Now the situation has changed a little, the Ministry of Labour of Russia has taken actions against the problem on female equality, having developed Gender strategy of the Russian Federation. In this document it is told about equaling the wages in "male" and "female" occupations, «development of female small business» and creation of conditions for labour activity «for persons with family duties».
But there exist as well social tendencies to reduction of gender differences in earnings. For example, for employers the professionalism of a candidate is now more important than the gender. It can be confirmed by the increase in the number of the women occupied in traditionally "men" industries and occupations — metallurgy, motor industry, and politics.
The situation in regions differs from that in the capital. There most women occupy low posts in such branches as medicine, education, agriculture and light industry. Besides, up to now the majority of women of working age prefers to be engaged in housekeeping. Results of the sociological research3 have shown that the most significant motivator for men in regions is wages increase (45,4% of respondents, from them 36,1 % of men and 18,5 % of women); for women — flexible work hours (50,6% of respondents, from them 12,7% of men and 63,2% of women) and days of a compensatory holiday (57,2% of respondents, from them 18,1% of men and 60,7% of women).
But, nevertheless, the step to overcoming gender earnings differences is already made — every year the increasing career horizons and the increasing possibilities for professional self-realisation open to women. According to the forecasts, shortly gender differences in the payment level will be gradually reduced, as experts-women become more and more in demand.
Here is the forecast of earnings differences between men and women for the future years (the relationship of the average female’s wage to the average male’s wage is shown): 2010 — 0,73; 2012 — 0,76; 2014 — 0,79; 2016 — 0,82; 2020 — 0,88; 2030 — 0,95; 2050 — 0,95. One can expect that gender differences in wages are going to decrease.
With the efforts of the government and the society, earnings differences in Russia (at least, those due to discriminating practices), will be reduced significantly in the nearest future.

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