Development of the Mechanism for Regulating Low Income from Employment as a Trend of Increasing the Living Standards of Population of the Russian Arctic

Abstract

The Arctic has a special place in the strategy of socioeconomic development of Russia. The strategic tasks outlined at the present stage imply the integrated development of the Arctic, achieving positive changes in the economy and the social sphere, raising the standard of living and the role of income from employment in ensuring the livelihoods of the population. The article is devoted to the mechanism of regulation of low income from employment, considered in the framework of improving the living standards of citizens living and working in the Arctic.The Object of the Study. Arctic living standardsThe Subject of the Study. Regulating low incomes from employment of the Arctic populationThe Purpose of the Study. Development of a mechanism for regulating low income from employment in the Arctic in order to improve the living standards of the populationThe Main Provisions of the Article. Low income from employment negatively affects the standards of living of the population. In the Arctic, the situation is aggravated by a weak social infrastructure, high cost of living, and territorial remoteness from developed industrial centres. Low labour incomes are causing low-income households and high social risks. The current system of state guarantees and compensations, designed to reimburse additional material and physiological costs in connection with work and living in extreme climatic conditions, does not eliminate the problem of low incomes. The economic effect of district coefficients and northern allowances for seniority is insufficient for this. The lack of incentives for social and economic feasibility to live and work in harsh northern conditions leads to undesirable trends in migration processes. The continued outflow of population is a big problem for the modern Arctic.An important policy for improving the living standards of the population is an effective policy for regulating low income from employment. The key role is played by the mechanism for regulating wages and its criteria basis. Their development is focused on the two-dimensional system of social criteria of low-income considered in the work, which is formed on the basis of consumer budgets – the cost of living and the socially acceptable (recovery) consumer budget. The paper gives suggestions for the creation of Arctic systems of remuneration and taxation of business.