The effect of wage differentiation on social inequality in modern Russian society

Income inequality remains a persistent societal problem. Wage is considered to be the main source of people’s income. Unjustified wage differentiation is regarded as a prerequisite for social and economic stratification. Thus, unreasonable income inequality is typical for modern Russian society. In addition, there is a deterioration in backdated wages and improper wage gap even between the employees having similar professional characteristics and holding similar posts. This situation leads to the fact that wages do not provide a decent standard of living for a person, and it results in a decrease in work motivation. Mitigating these imbalances is essential for effective social and economic policy. The study discusses various wage differentiation factors and the scope of its regulation.