Reserved wages in Belarus: characteristics and evaluations

Abstract

The article presents the research results of the institute of reserved wages, which is a new research area in the Republic of Belarus. Reserved salaries are presented from the perspective of the methodology of labor economics. Options for assessing the level of reserved wages are discussed both from the point of view of individuals who are searching for a new job, and from the position of the state that sets its level in the national economy of the country. The work uses data from macro statistics of the Republic of Belarus for the period 2004–2016. The evaluation results showed that the reserved wages in Belarus differ from the wage rates in the country, and this indicates that its level is not overstated and it is adequate to the conditions of the Belarusian labor market. Its level stimulates the activation of employment of unemployed individuals. It is proved that in the Belarusian economy, the main determinants that affect the level of reserved wages are the number of unemployed at the age of 45 + years, youth unemployment (less than 19 years) and the number of unemployed with higher education, the level of average nominally accrued wages. Belarusian estimates showed that the result of a job search objectively depends on the level of wages.