Demand in the Russian Labor Market

Abstract

The work deals to the construction of the labor demand function in modern Russia. This function is two-factor, with real wages and gross domestic product acting as its factors. The function in question is based on a modified labor demand function, which is a regression equation linking the labor intensity of production with the average real wage. Labor intensity in this case is interpreted as the amount of demand for labor on the part of an average Russian employer in the production of final products worth, for example, 1 million rubles per year. The product of the theoretical value of the modified demand function in a certain year by the value of GDP gives the theoretical number of employed, interpreted as the value of the demand for labor. The article presents the results based on the dynamic series of official Russian statistical information for 2001–2020 calculations that allowed us to determine the type and parameters of the modified labor demand function. The characteristic features of this function are decreasing with deceleration and relatively high elasticity. The relationship between labor intensity and wages can be described as very close. As the calculations have shown, the two-factor demand function also adequately reflects the situation on the Russian labor market.