Key factors of civil servants’ payment in Russia and Great Britain

Abstract

The article compares civil servants’ payment systems and wage levels in the Russian Federation and the United Kingdom, and identifies the factors affecting the civil servants’ pay level in both countries. With comparable civil servants’ payment levels in terms of purchasing power in Russia and Great Britain, there are differences in structural elements of payment and the fields of activity that are highly paid. The study is based on data analysis of the RF Ministry of Labour and the UK Office for National Statistics concerning civil servants’ pay levels in central offices of federal executive bodies of the Russian Federation and central public bodies of the UK. The comparative analysis shows that civil servants’ payment in Russia is significantly higher than that in Great Britain in such fields as security, defense, justice, legal proceedings, construction, housing and utilities, and statistics. In Great Britain, by contrast, civil servants are paid more than in Russia in speres of education, science, culture, tourism, media, industry and economics. Based on theories and studies reviewed, the article provides an econometric analysis of factors affecting the civil servants’ pay level in Russia and Great Britain. Regression analysis identifies statistically significant institutional, gender and age factors which determine the high level of the civil servants’ pay in both countries, for example, activities in financial, tax and customs spheres in Russia or work in small-size public bodies in Great Britain.

References

Borshchevsky, G. A. (2017). The Reform of Bureaucracy: Comparing the Experience of Great Britain and Russia. Russia and the contemporary world, 3, 260–279.

Gimpelson, V. (2019). Age and Wage: Stylized Facts and Russian Evidence. HSE Economic Journal, 23(2), 185–237. https://doi.org/10.17323/1813-8691-2019-23-2-185-237

Grinberg, R. S., Akhunov, R. R., Volodin, A. I., Gubarev, R. V., & Dzyuba, E. I. (2018). Performance-based pay — a new (mixed) payment scheme for Russian civil servants. Economic and Social Changes: Facts, Trends, Forecast, 11(6), 163–183. https://doi.org/10.15838/esc.2018.6.60.10

Monitoring data of federal state civil servants’ personnel composition and remuneration in central offi ces of federal executive authorities of the Russian Federation in 2019 and 2020, conducted by the The Ministry of Labour and Social Protection of the Russian Federation (restricted access information).

Dekina, M. P. (2016). Statistical Analysis of Factors of Wage Differentiation in Russian Federation. Izvestiya Sankt-Peterburgskogo gosudarstvennogo ekonomicheskogo universiteta, 1(97), 98–102.

Dobrolyubova, E. I., Klochkova, E. N. & Yuzhakov, V. N. (2018). The number and remuneration of federal state civil servants in the context of the introduction of programtargeted and project approaches. Moscow: Publishing House “Delo” RANEPA.

Dobrolyubova, E. I., Tatarinova, L. N. & Yuzhakov, V. N. (2019). Prospects for improving the competitiveness of civil servants’ wages. Moscow.

Zhigun, L. A. (2014). Modern Employ’s Payment Models in the USA Public Sector. Management Science, 3, 48–55.

Zhuravleva, T. A. (2017). The System of Remuneration and Motivation of Public Civil Servants: A Review of International Practice. Public Administration. E-journal (Russia), 64, 331–345.

Zanko, T. A. (2017). Approaches to Organization of Payment Systems at the Federal State Civil Service: The Experience of the USA and Germany. Economic and Law Issues, 9, 12–17.

Ilyin, A. E., & Samoilov, A. R. (2015). Current state and level of differentiation of wages in the Russian Federation. Vestnik Kurskoj gosudarstvennoj sel’skohozyajstvennoj akademii, 8, 35–39.

Kapeliushnikov, R. I. (2012). Russia’s human capital: what is its value? Working paper WP3/2012/06. Moscow: Publishing House of the Higher School of Economics. Qualification requirements for filling positions in the civil service. (2016, February 5). Ministry of Labour and Social Protection of the Russian Federation. Retrieved July 7, 2021, from https://mintrud.gov.ru/ministry/programms/gossluzhba/16/1

Klepikova, E. A., & Kolosnitsyna M. G. (2017). Ageism at the Russian Labour Market: Wage Discrimination. Russian Management Journal, 15(1), 69–88. https://doi. org/10.21638/11701/spbu18.2017.104

US dollar exchange rate in 2020. (n.d.). Ratestats. Retrieved July 7, 2021, from https:// ratestats.com/dollar/2020/

Maltseva, I. O., & Roschin, S. J. (2007). Gender Segregation and Labor Mobility in Russian Labor Market. Moscow: The HSE Publishing House. 296 p.

Parfenteva, D. S. (2014). Approaches to the Optimization of the Level of Pay Diff erentiation for Civil Servants. Barabashev, A. G. (Ed.). Prikladnye issledovaniya chelovecheskih resursov v publichnom upravlenii (p. 136–162). Moscow: New chronograph.

Roshchin, S. Y., & Zubarevich N. V. (2005). Gender equality and extension of women rights in Russia within millennium development goals. Moscow: UN Information Center UNDP. Rudakov, V. N. (2015). The dynamics of youth wages in the Russian labor market. Voprosy statistiki, 11, 43–57. https://doi.org/10.34023/2313-6383-2015-0-11-43-57

Sobolev, E. (2017). Wages in the System of Labour Relations: Stereotypes and Russian Realities. Institute of Economics of the Russian Academy of Sciences.

Sobolev, E. N. & Soboleva, I. V. (2014). Tendencies and Factors of Differentiation of the Salary in the Russian Economy. Vestnik of the Plekhanov Russian University of Economics, 5, 33–50.

Tishchenko, E. N. (2012). Composition of Stimulating Elements and their Correlation in the Payment of Civil Servants’ Work in the Russian Federation and Foreign Countries. Public Administration Issues, 4, 160–168.

Decree of the President of the Russian Federation of 25.07.2006 No. 763 “On salaries of federal state civil servants”.

Decree of the President of the Russian Federation of 09.03.2004 No. 314 “On the system and structure of federal executive bodies”.

Federal Law of 27.07.2004 No. 79-FZ “On the state civil service of the Russian Federation”. Adopted by the State Duma of the Federal Assembly of the Russian Federation on 07.07.2004.

Chekin, M. A. (2014) Remuneration for Russian state civil servants’ official activities: history, practice, experiments, prospects. Moscow: NRU HSE.