The mechanism of state regulation of wage payment in Ukraine: contemporary trends and ways of reforming

Tatiana Bogdanova
PhD in Economics, Associate Professor, Department of Human Resources and Labor Economics, Odessa National Economics University, e-mail:tibog@meta.ua

Marina Kryvtsova
PhD in Economics, lecturer, Department of Human Resources and Labor Economics,Odessa National Economics University, e-mail:m.kryvtsova@gmail.com

Cite this article:

Bogdanova, T., Kryvtsova, M. (2017). The mechanism of state regulation of wage payment in Ukraine: contemporary trends and ways of reforming. Ed.: M. Zveryakov (ed.-in-ch.) and others [Mekhanizm derzhavnoho rehuliuvannia oplaty pratsi v Ukraini: suchasni tendentsii ta shliakhy reformuvannia; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2-3 (63-64), pp. 80–91.

Abstract

The article is devoted to topical issues of reforming the state mechanism of regulation of labor remuneration in Ukraine. The consequences of influence raising the minimum wage standard on the level of population incomes are investigated. It is determined that the existing methods for establishing state social standards require a new approach based on the real value of human resources in the labor market. It is proposed to use the average salary and the Kaitz index to calculate the social standard of the minimum wage. Recommendations to improve the mechanism of state regulation of labor remuneration in the direction of creating effective mechanisms of state guarantees and a balanced taxation system are formulated.

Keywords

labor remuneration; social standards; minimum wage; the Kaitz index; the mechanism of state regulation of labor remuneration.

JEL classification: J380;  DOI: https://doi.org/10.33987/vsed.2-3(63-64).2017.80-91

UD classification: 331.2:338.246.025.2(477)

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