Modeling interregional differentiation in wages (case of Republic of Bashkortostan’s budget sector)

Abstract

Results of the analyses of the interregional differentiation in wages in the case of the Republic of Bashkortostan are shown. The analysis revealed the following problems in the region: the growing gap the average regional wage from the national average; the formal reduction of the inequality in wages; the presence of lasting inter-municipal differentiation in most types of economic activity; the presence of significant inter-industry and intra-industry differentiation; growth differentiation of salaries in socially significant activities; the presence of intra-industry differentiation, which is not a professional qualification in nature. The regulation of wage growth in socially significant types of economic activities is proposed as one of the tools for solving problems of differentiation in remuneration. The solution to this problem leads to define the differentiated interest rates for increase wage levels. The possibility of solving this problem based on the methods of agent based modeling. The results of numerical experiment are presented. Refs 34. Figs 7. Tables 5.