The paper provides a thorough critique of conventional wisdom that in the Russian economy of 2000-s labor compensation was increasing at much higher annual rates than productivity. It reveals a number of wrong implicit assumptions that lead to this statistical illusion. The most important of...

The labour market situation of low-educated people is particularly critical in most advanced economies, especially among youngsters and women. Policies aiming to increase their employability either try to foster their productivity and/or to decrease their wage cost. Yet, the evidence on the...