products; 99.3% in production,transportation and distribution of electricpower, steam, gas and hot water; and 97.7%in production and distribution of gas fuel. Sothe crisis had negative impact on wages ofpeople employed in production andprocessing of crude oil, but did not affectwages in other energy segments, wherewage levels even rose substantially in somecases.The rate of job losses in the energyindustry was lower than in the whole economyand there were even increases of employmentin two sub-sectors: production anddistribution of electric power, gas, steam andhot water; and pipeline transportation.However, reduction of head count in fuelextraction and also in production of coke andoil products was higher than the nationalaverage since the crisis began. So employmentand wages in the oil sector were negativelyaffected by the crisis, but proved immune to itin other energy sectors, making overallemployment and wage figures for the energysegment look better than for the economy asa whole.The next question is how the situationin the energy sector affects personal incomesthroughout the economy. There are a numberof indexes for assessment of impact of theenergy sector on employment, payroll, publicincomes and inequality (Table 3.6). Energyrelatedbusiness has limited importance forincomes and employment: only 2.5% ofemployees at large and medium-sizedcompanies work in the power sector and theyrepresent only 2.9% of the total payroll at alllarge and medium-sized <strong>Russia</strong>n companies.Table 3.5Wages and employment in the energy sectorNominal monthly wagesSalaries in June 2009 Wages in H1 2009Job turnoverRubles% vs. June2008Rubles% vs. H12008% vs.nationalaverageThousand% vs. June2008Total 19247 108.2 17929 110.3 100 37643.8 96.2Extractionof fuel resources38141 105.0 38725 108.3 220 582.7 94.9Production of coke and oilproducts34022 104.1 37050 114.9 210 108.2 94.2Production, transportationand distribution of electricpower, natural gas, steam andhot water30089 110.9 27865 112.7 155 676.7 101.3Productionand distribution of gas fuel19926 109.2 19300 112.3 108 161.1 99.5Pipeline transportation 60067 178.0 40897 123.3 230 188.2 101.3Entire energy sector 35402 115.7 - - - 1716.9 98.460National Human Development <strong>Report</strong> in the <strong>Russia</strong>n Federation 2009
Employment in the energy sector accounts foronly 2% of total employment incomes, soimportance of the energy sector for the labormarket, incomes and wages is quite limited.Some experts believe that high salaries in theenergy sector are the main reason for highdifferentiation in salaries and incomes, and it istrue that, as of April 2009, 32.2% of energysector employees were among the best-paid10% in the economy as a whole. No othersegment has such a high share of its employeesamong the economy’s best-paid workers (therunners-up are financial operations, with24.6%, and real estate including rentaloperations, with 16.4%). But this does notentail that income and wage differentials aredetermined by the energy sector, since thesector accounts for only 12.7% of all the bestpaid10% of employees in the economy. Forcomparison, real estate employees are 12.5%of the 10% best-paid, state administration andmilitary security are 11.1%, transport andcommunications 10.6%, and financialorganizations 7.6%. Education, health care andsocial services together take 13.6% of bestpaidjobs, surpassing the share of energy. Also,the energy sector has relatively low intrasectoralpayroll differences: wages of the 10%best-paid employees in the sector are 12.5times higher than those of the 10% of the leastpaid. In the financial segment this gap is 26.7times, and it is 15 times in both education andhealth care. All that can be realistically said,therefore, is the opposite of what some expertsthink: the energy sector operates againstincome inequality by not making any largecontribution to low-paid labor.To summarize impact of the energyindustry on incomes, employment andinequality: the segment provides a verylimited number of jobs, most of which arewell-paid. Due to its small number ofemployees and low intra-sectoral wagedifferentiation, the energy sector is not thedriving force for sharp inequality in incomes. Alarge part of incomes generated in the sectoris redistributed through the budget, otherbusinesses associated with the energy sector,dividends, and social packages and bonuses,which are not counted in the monthly wageand income reckonings. The reasons forinequality are not to be sought in theresource-oriented economy as such, but in theexisting system of state institutions forredistribution of incomes.3.3. Household spendingon housing utilitiesand social measuresto mitigate price risesfor such servicesand for electricityAs shown above, the link betweentrends in the energy sector and the standard ofTable 3.6Impact of the energy sector on employment and inequalityIndicatorValue1. Share of energy sector employees in total numbers of employed, June 2009, % 2.52. Share of wages received by energy sector employeesin total wages paid, June 2009, %2.93. Share of wages received by energy sector employeesin total personal incomes, June 2009, %2.04. Share of energy sector employees, who are among the 10% best-paid employees in the economy,in all of the 10% best paid, April 2009, %12.761
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National Human Development Reportin
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National Human Development Reportin
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ACKNOWLEDGEMENTSThe authors express
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Dear Reader,You have before you the
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PREFACEThis is the 13 th National H
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One of the major benefits of renewa
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odies; outdoor air; rocks and soil;
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Design and construction of geotherm
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Box 6.3. Prospects for nuclear powe
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consists of out-dated equipment at
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ConclusionThe world’s nuclear pow
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7.1. Impact of the fuel& energy sec
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Table 7.5Solid waste from productio
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Table 7.7Areas of disturbed and rec
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nature of the impact (atmospheric e
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Further, the economic cost ofenviro
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trends continued the damage would a
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What the government needs to do ino
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Figure 7.2.1Specific atmospheric em
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money value of industrial output) c
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Figure 7.2.4Trends in specific atmo
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Chapter 8The Energy Industry and Su
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eing equal) it only reflects that p
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(MDGs), issued by the UN in 2000. T
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8.4. The energy factorin integral i
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Canada, the USA and Great Britain h
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Box 8.2. Energy efficiencyindicator
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Box 8.4. Energy efficiency rating o
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41 Penza Region 116.0 -35.2 -4.542
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Appendix to Chapter 1Table 1.1. GDP
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Attachment to Chapter 4Table 4.1Rus
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Attachment to Chapter 4Volga Federa
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Attachment to Chapter 4Belovo Belov
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The previous National Human Develop