Reaction of Wages to Changes in Consumer Prices Under External Shocks: Far Eastern Regions

ERI FEB RAS	Issue's contents	RUS
	Regionalistica 2023 Volume 10 number 6 pages 59-78

Title of the article	Reaction of Wages to Changes in Consumer Prices Under External Shocks: Far Eastern Regions
Pages	59-78
Author 1	Naiden Svetlana Nikolaevna doctor of economics, professor of the Russian Academy of Sciences, deputy director for research Economic Research Institute FEB RAS 153, Tikhookeanskaya Street, Khabarovsk, Russia, 680042 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-1647-7853
Author 2	Domnich Yegor Leonidovich candidate of sciences (economics), senior research fellow Economic Research Institute FEB RAS 153, Tikhookeanskaya Street, Khabarovsk, Russia, 680042 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-1379-8053
Abstract	External macroeconomic shocks have changed not only the national and regional labor markets themselves, but also the very ability of these markets to change in response to important changes in the parameters of the external environment. Therefore, wage flexibility as a reaction to external shocks is one of the most important subjects of interest for researchers. The study assessed the flexibility of nominal wages in response to changes in the consumer price index in the labor markets of the Far Eastern Federal District (Far Eastern Federal District) in the period from January 2010 to August 2023 with a detailed description of the periods of the most important external shocks. A comparative spatial and temporal analysis of the flexibility of the Far Eastern labor markets allowed us to justify their transition from a regime of price adaptation to a regime of limited supply of labor resources during the «pandemic» crisis of 2020–2021. A long-term trend of flexibility loss by the regional labor markets of the Far Eastern Federal District has been revealed, which was especially clearly manifested during the second sanctions shock of 2022–2023.
Code	331.5
DOI	10.14530/reg.2023.6.59
Keywords	wage flexibility, nominal wages, consumer price index, external shocks, first sanctions shock, «pandemic» crisis, second sanctions shock, labor markets of Russian regions, Far East, comparative analysis
Download	2023-06.59.pdf
For citation	Naiden S.N., Domnich Y.L. Reaction of Wages to Changes in Consumer Prices Under External Shocks: Far Eastern Regions. Regionalistica [Regionalistics]. 2023. Vol. 10. No. 6. Pp. 59–78. http://dx.doi.org/10.14530/reg.2023.6.59 (In Russian)
References	1. Vakulenko E.S., Gurvich E.T. Real Wage Flexibility in Russia: Comparative Analysis. Zhurnal Novoy ekonomicheskoy assotsiatsii = Journal of the New Economic Association. 2016. No. 3 (31). Pp. 67–92. (In Russian) 2. Vakulenko E.S., Gurvich E.T. Modeling the Mechanisms of Russian Labor Market. Voprosy ekonomiki [Voprosy Ekonomiki]. 2015. No. 11. Pp. 5–29. (In Russian) 3. Gimpelson V.Ye., Kapeliushnikov R.I. The Russian Labour Market Model: Trial by Recession. Zhurnal Novoy ekonomicheskoy assotsiatsii = Journal of the New Economic Association. 2015. No. 2 (26). Pp. 249–254. (In Russian) 4. Ivanova M.A. Analysis of the Nature of Cause-and-Effect Relationship Between Inflation and Wage in Russia. Problemy prognozirovaniya [Studies on Russian Economic Development]. 2016. Vol. 27. No. 5. Pp. 575–584. (In Russian) 5. Kapeliushnikov R.I. The Anatomy of the Corona Crisis Through the Lens of the Labor Market Adjustment. Voprosy ekonomiki [Voprosy Ekonomiki]. 2022. No. 2. Pp. 33–68. http://dx.doi.org/10.32609/0042-8736-2022-2-33-68 (In Russian) 6. Kapeliushnikov R.I. The Russian Labor Market: A Statistical Portrait on the Crises Background. Voprosy ekonomiki [Voprosy Ekonomiki]. 2023. No. 8. Pp. 5–37. http://dx.doi.org/10.32609/0042-8736-2023-8-5-37 (In Russian) 7. Topilin A.V., Vorobyova O.D. Dynamics and Regional Features of Labour Market Recovery During COVID-19. Ekonomika regiona = Economy of Regions. 2023. Vol. 19. Issue 1. Pp. 85–98. http://dx.doi.org/10.17059/ekon.reg.2023-1-7 (In Russian) 8. Arpaia A., Mourre G. Institutions and Performance in European Labour Markets: Taking a Fresh Look at Evidence. Journal of Economic Surveys. 2012. Vol. 26. No. 1. Pp. 1–41. https://doi.org/10.1111/j.1467-6419.2009.00623.x 9. Arpaia A., Pichelmann K. Nominal and Real Wage Flexibility in EMU. European Economy – Economic Papers. 2007. No. 281. https://doi.org/10.2139/ssrn.1003122 10. Calvo G.A., Coricelli F., Ottonello P. Labor Market, Financial Crises and Inflation: Jobless and Wageless Recoveries. Available at: https://ssrn.com/abstract=2164604 (accessed 1 November 2023). 11. Clar M., Dreger C., Ramos R. Wage Flexibility and Labour Market Institutions: A Meta-Analysis. Kyklos. 2007. Vol. 60. No. 2. Pp. 145–163. https://doi.org/10.1111/j.1654-1103.2009.05464.x 12. Deelen A., Verbeek W. Measuring Downward Nominal and Real Wage Rigidity – Why Methods Matter. Available at: https://www.researchgate.net/publication/286354152 (accessed 1 November 2023). 13. Dickey D.A., Fuller W.A. Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association. 1979. Vol. 74. No. 366a. Pp. 427–431. https://doi.org/10.1080/01621459.1979.10482531 14. Eichhorst W., Feil M., Marx P. Crisis, What Crisis? Patterns of Adaptation in European Labor Markets. https://doi.org/10.2139/ssrn.1638481 15. Folmer K. Why Do Macro Wage Elasticities Diverge? A Meta Analysis. Available at: https://www.researchgate.net/publication/239806274_Why_do_macro_wage_elasticities_diverge_A_meta_analysis (accessed 1 November 2023). 16. Ghali Kh.H. Wage Growth and the Inflation Process: A Multivariate Cointegration Analysis. Journal of Money, Credit and Banking. 1999. Vol. 31. No. 3. Pp. 417–431. https://doi.org/10.2307/2601119 17. Gimpelson V., Kapeliushnikov R. Labor Market Adjustment: Is Russia Different? Available at: https://www.hse.ru/data/2011/04/05/1211681177/WP3_2011_04.pdf (accessed 1 November 2023). 18. Gimpelson V., Lippoldt D. The Russian Labour Market: Between Transition and Turmoil. Lanham, MD: Rowman & Littlefield Publishers, Inc., 2001. 241 p. 19. Hess G.D., Schweitzer M. Does Wage Inflation Cause Price Inflation? https://doi.org/10.2139/ssrn.1025464 20. Hu L., Toussaint-Comeau M. Do Labor Market Activities Help Predict Inflation? Economic Perspectives. 2010. Vol. 34. No. 2. Pp. 52–63. 21. Jonsson M., Palmqvist S. Do Higher Wages Cause Inflation? https://doi.org/10.2139/ssrn.906568 22. Mehra Y. Wage-Price Dynamics: Are They Consistent with Cost Push? Economic Quarterly. 2000. Vol. 86. No. 3. Pp. 27–44.
Financing
Date