Labor market in an emerging market economy
As for the labor market, there has always been one in the USSR. Attempts to displace it by the state wage system only led to its deformation and increased inflationary pressure. The influence of supply and demand on the level of wages was manifested through the need to raise wages for employees of scarce specialties, regardless of their qualifications and other qualities. At the same time, there are practically no mechanisms for regulating this market.
The institution of agreements between trade unions and employers does not really exist, since the employer is almost universally the state that controls trade unions. The administration of enterprises most often cannot represent the interests of the employer, as it is not interested in saving wages. On the contrary, she tends to neutralize all conflicts with the workforce by increasing her salary. Therefore, external restrictions such as targets, limits, regulations, or tax regulators are needed. Their inefficiency is explained by the loss of control over income growth in 1988 due to the abandonment of administrative methods of labor cost planning.
We have the institution of a collective agreement at the enterprise. Its role has been increasing in recent years, especially due to the changing position of trade unions and the emergence of an independent labor movement. However, in these contracts, the issues of the level of remuneration have not usually been discussed so far.
A characteristic feature of the Soviet labor market is its low mobility, especially in Central Asia and the Caucasus, which is largely explained by national characteristics. But there are other problems that seriously limit the mobility of labor resources, such as difficulties in obtaining housing and the passport regime. These limitations are difficult to overcome at once.
The labor market in its normal forms requires the creation of an effective system of employment and retraining of personnel, the introduction of unemployment benefits that would protect workers from the accidents of market conditions and would remove the need for enterprises to solve relevant social problems. In the USSR, these institutions are also undeveloped. The employment system exists, but it is inefficient and needs serious restructuring. There are no unemployment benefits, and their introduction in conditions of a huge budget deficit will probably be an unbearable burden for the budget. There is still unemployment in the Caucasus, Central Asia, and a number of other regions. The introduction of benefits would immediately require large allocations for payments to those who are already unemployed. Finally, it is enterprises that are currently entrusted with major social tasks, including maintaining labor reserves. Changing the current situation will be associated with considerable social problems. Watch USA online porn https://mat6tube.com teens, milfs, matures!