Transition to a New Economy: Transformation Trends in the Fields of Income and Salary Functions

Abstract

The rapid spread of information technologies and other phenomena in the new economy causes significant changes in the social and employment spheres. The objective is mainly to analyze and systematize the peculiarities of labor and payment for it in the new economy. In this paper are used the analytical grouping method for characterizing salary functions, as well as changes in the social and labour sphere that take place in the new economy, correlation-regression analysis to determine the relationship between average income and factors affecting its level. The results of the paper show three important findings. Firstly, the gradual changes in the content of labour and forms of its organization that happen in modern conditions under the influence of dissemination of information and communication technologies require new approaches to income adjustment. Secondly, the authors also found that the fair employee compensation, ensuring productive employment in modern conditions, is a challenge not only of the national but also of international scale. Thirdly, the prospective directions of reducing inequality and social tension in society is the guarantee of the basic unconditional income; progressive tax on all types of income; reduction of the length of working time while maintaining payments and improving productivity.