Consequences of raising the retirement age for the labor market in the regions of russia

Abstract

The article presents the results of a study aimed at assessing the consequences for the labor market of raising the retirement age in Russia. The foreign experience of raising the retirement age, on the basis of which a number of characteristic moments of this process are highlighted, is presented. The review of the scientific literature showed a polemical character of the problem under investigation and allowed to formulate a hypothesis of the study, which is as follows: raising the retirement age will lead to an increase in the supply of labor, which will entail the reduction of the labor price. The article presents an analysis of the current situation in the labor market. Since the raise of the retirement age will require the availability of vacant jobs in an amount not less than the number of people detained in the labor market, two tasks have been solved in this study. In the first task, the change in the average wage was calculated, provided that the number of jobs will meet the increased need, i.e. unemployment will remain at the same level. In the second task, the number of jobs is fixed to estimate the potential effect of raising the retirement age. Evaluation of the effect of raising the retirement age with a fixed number of jobs was carried out by constructing a regression relationship between wages and unemployment, differences in age groups were taken into account by introducing fictitious shift and tilt variables into the model. According to the calculations obtained under the first and second tasks, wages will decrease with the raising of the retirement age by one year for both sexes. The results of the study showed that the decision to raise the retirement age should be accompanied by a number of serious additional measures, primarily in the employment of population sector. © 2019, Economic Laboratory for Transition Research. All rights reserved.