CIA HISTORICALROGRAM
AVERAGE ANNUAL MONEY EARNINGS OF WAGEWORKERS IN SOVIET
TOOR IN PART WrTHQlJ^Wif PERMISSION OF THE AGENCY
INTELLIGENCE AGENCY
AVERAGE ANNUAL MONEY EARNINGS OF WAGE WORKERS IN SOVIET
cia/rr ER9
CENTRAL INTELLIGENCE AGENCY Office of Research and Reports
co:rcEwrs
I. Introduction
H. Growth of Average Annual Honey Earnings
III. Average Annual Money Earnings, by Branch of Industry .
IV. Reliability of
V. Comparison of the Estimates with Previously Published
Estimates .
Appendixes
Appendix A. Composition of the Wage Fund forSoviet Industry .
Appendix B. Methodology
Appendix C. Source References
Tables
Average Annual Money Earnings of Wageworkers
in Soviet Industry, Selected
Average Annual Money Earnings of Wageworkers
in Soviet Industry, by Branch of9
omparison of Newly Estimated Average MoneyWageworkers in Soviet Industry6 withEstimated Average Money Earnings ofEmployees in Soviet Industry
- ill -
AVKHAGK ANNUAL -MOHSY EARNINGS Of WAGEWORKERS IN SOVIET
I. Introduction
This report presents cut[mates of average annual money earnings ofn Soviet81 ond estimates of these earnings in major branches of industry 'or the years considered in this report, vogevorkersthe largest portion of all workers and employees* In Industry fromoercent- and, in general, they earned less than engineering-technical workers and more than clerical workers orand Junior service personnel (the other categories of workers and employees). Therefore, estimates of money earnings of wageworkersvaluable support to previously published estimates of moneyof all workers and employees. Furthermore, more data related to earnings of wageworkers In particular arc available than data related to all workers and employees In general.
II. Growth of Average Annual Money Earning!!
* This report complements an earlier report, published inhich presents estimates of average money earnings of all workers and employees in Soviet industry0/ (For serially numbered source references, see
** The Soviet statistical category of wageworker (robochly) is similar to the US category of production worker, although somewhat more limited In coverage. The Soviet category excludes some custodialand technical personnel normally Included in the US concept of production worker.
oviet industry Includes mining and electric power production as well as manufacturing activities-
+ Workers and employeesechnical term used by the Soviet government. It includes all wage and salary earners but excludes members of the armed forces and collective farmers. Workers lnproducers' cooperatives were not included ln the total number of workers and employees in industryhen the producers'were absorbed into the state sector.
" ollows on p. 2. Mo direct or Indirect data on money earnings of workers2 have been observed in Soviet publications.
The growth of average annual money earnings of wageworkers in Soviet industry81 is shown int This series
Index
Amount b/
84
/
100
115
139
151
176
222
az For source identification numbers and methodology, see Appendix B. All figures are rounded to two or three places.
ruble figures in this report are given in "new rubles"in use after the Soviet currency reformbe converted into US dollars at the official rate of exchangeruble to This rate does not necessarily reflect thethe ruble in terms of the dollar.
industry only.
apprentices. omparable figure8
Estimated Average Annual Money Earnings of Wageworkers in Soviet Industry aj Selected
represents gross earnings paid to these workers through the wage funds of the various state enterprises. Therefore, the series includes basic wage rates and wage supplements (overtime pay, production bonuses, and the like) but does not include other less direct forms of remuneration (pensions, awards for socialist competition, educational stipends, and other government transferhc types of payment included in the wage fund are listed in Appendix A. The methodology and sources forre described in Appendix B.
III. Average Annual Money Earnings, by Branch of Industry
Estimates of average annual money earnings of wageworkers in major branches of Soviet industry9 are given in This table shows the relationship of these comings to average earnings of wageworkers ln all industry.
The early influence of the regime's priority treatment of producer goods industries can be seen in the changes85 (the first years of the era of the Five Yearotably in the widening differential between coal, petroleum, and ferrous metallurgy (the "leading links" in the great industrialization drive) on the one side and food, sewing, and fur, leather, and footwear on the other-** Some changes in interbranch differentials also occurred69 as the wage reformrogressed. These data, however, do not show the full effect of the wage reform on Interbranchbecause the reform was not completed in industry until the end*
IV. Reliability of the Estimates
The estimates of average annual money earnings of wageworkers in industry were constructed from reported percentage changes in money and real earnings and in the cost of living, asin detail In Appendix B- The substantial amount of cross checking mode possible by these data provides some assurances that the series is reliable. The series, however,hanging coverage of workers. The figures forss cover wageworkers in large-scale industry only, whereas the figures for World War II and the postwar period appear to cover wageworkers in all state industry. In addition, the Soviet definition of "industry" sometimes has included and sometimes has excluded some quasi-industrial activities, such as logging, fishing, flour milling, and institutional food catering. 5/
ollows on p. k.
** Priority treatment of workers in producer goods industries began duringage reform.
*** iscussion ofage reform, see
The estimates of average annual money earnings of wageworkers, by branch of industry, were made by multiplying the average earnings of wageworkers in all Industry by the reported percentage relationships of average earnings in each branch to that for all industry, asin detail in Appendix B. The percentage relationships were reportedumber of authoritative and mutually supporting sourcesingle set of data stretching8 Although the various sources differ in the number of branches and years reported, they include many identical percentages, which suggests that the data have been drawningle basic sourceprobably the "labor section" statistics of the Central Statistical Administration.*
The estimates, by branch of industry, suffer from definitional problems similar to those involved in the estimates for all industry. The branch estimates refer to the branch as defined by the USSR in the given year, and the definitions of the industrial branches have changed over the years. For example, the coke-chemical industry sometimes is included in tho ferrous metallurgy branch and sometimes in the chemical branch. The lines in* therefore, do not contain entirely comparable figures. Summaries and discussions of the many changes in branch definitions appear in Ellas, Savinskiy, Fedorov, and others. 8/
Although these changes in the definitions of industry and of the various branches of industry limit the precision of the variousthe estimates doeasonably reliable base forinterbranch earnings and income trends, for constructing value-added weights for any given year to use In indexes of industrial production, and for some other purposes.
V. Comparison of the Estimates with Previously Published Estimates
The new estimates of average earnings of wageworkers6 are compared in* with previously published estimates of average earnings of all workers and employees* both for all industry
iscussion of the "labor section" statistics compiled by the Central Statistical Administration andescription ofcollection procedures, see
** P. h, ollows on p. 6.
* The estimates of average earnings of all Industrial workers and employeesy branch of industry, which were presented in an earlier report,, were madeumber of Soviet sources that revealed average earnings in thc coal industry5 and the percentage relationship of average earnings in the coal industry to average earnings in other branches of Industry.
Table 3
Comparison of Newly Estimated Average Money Earnings of Wageworkers in Soviet Industry6 with Previously Estimated Average Money Earnings of Workers and Employees ln Soviet Industry
and5 5/
of
of
Average
b/
Average
Of Industry
Rubles)
for All Industry
Rubles)
All Industry
Indus try
metallurgy
metallurgy c/
building and metal-
power
and woodworking
materials
an earlier report
Rounded to four places from the five places given ln the earlier report (see footnote a,ncluding ore mining.
and for the various branches of Industry. Average earnings of wage-workers6 were only slightly larger than the earnings of all industrial workers and employees The estimates for branches of industry that arc compared inlso are very similar In spite of the use of different sources and methodologies ln the two
sets of estimates and thc use of adjacent rather than identical time periods.
The level of average annual money earnings of wageworkers might be expected to be similar to that of all workers and employees. 5 the level of earnings of tho remaining categories of workers and employees (engineering-technical workers and clerical workers,and Junior service personnel) were dispersed approximately equally above and below the average earnings of wageworkers, as follows:
Wageworkers
g-technical
workers Clerical workers Apprentlcea and Junior
service personnel
Total (estimatedearnings of all workers and employeesercentage of the average earnings of wageworkers)
9 il/
5 Ue-siduol)
Index of Average5)
2
0 Testi-
0
Percentage Relation-shlp*
ultiplied bynd dividedo give the rinal resultercentage.
** The earnings figures5ubles for workersubles for vagevorkars given In the earlier report (see Toolsootnote a, p.bove) and In this report, respectively, do not conform to the relationship indicated here. They do suggest, however, an equally close relationship between the earnings of the two categories. Furthermore, much of thc apparent lack of conformity might be attributed to the use of different sources and methodology.
* P.bove.
The high degree or correlation between the two sets of estimates, by branch of industry, presented in Tablelso supports thethat average annual money earnings of wageworkers in recent years are closely representative of tbe average for all workers and employeeseven by branch of industryand hence may be used with reasonable confidence when figures on earnings of workers and employees are not available.
APPENDIX A
COMPOSITION OF THE WAGEAGEWUHXER3
IM SOVIET INDUSTRY
The types of payments included in the wage fund for wageworkers ln Soviet Industrialre listed below. Many of the types of payments arc designed to compensate the piece rate worker for loss of earnings resulting from time not spent at his regular Job when he is assigned temporarily to other tasks.
1. Monetary Payments for Time Worked
a
Regular wage payments based on hourly and standard piece rates.
Payments to casual workers.
for longevity.
Payments for difficult or hazardous working conditions (to the degree that these are not already included ln regular wage payments).
Paymente for overtime, night, or holiday work.
Payments for service ln the Far North, the Far East, and other "remote" locations.
Regular bonuses for fulfillment of production, cost
reduction, and other plans. Premium payments to workers employed under progressive
piece rate systems.
Payments
Additional pay for piece rate workers temporarilyto Jobs that pay wages below the averageof their permanent positions.
Additional pay to piece rate workers to compensate for loss of earnings because of unfavorable working conditions such as lack of adequate supplies of materials, unsuitable tools and equipment, and technical complications outside theof the worker.
Additional pay to brigadiers for organizing the work of brigades.
pay.
Leave pay, including sick leave. Compensation for unused leave. Time-ofi pay for nursing
Travel pay for persons who are employed in the Far North and ln remote regions and who are being transported to places where leave time may be used.
Payment for working time used in the performance ofstate, social, or military duties.
Payment to Juveniles who are guaranteed full pay but are restricted by lawourour day and must be paid for the portion of the day not worked.
Allowances
Payment for time lost ln work stoppages that are not the fault of the workers.
3- Monetary Payments for Education and Training
Additional pay to persons attending classes during working hours to compensate for time lost. Payments for Instructing apprentices. Payments for supervising trainees.
U. Payments in Kind
The cost of "free" communal servicea such as housing and public utility services and the cost of payments ln kind in those instances in which such payments ore stipulated by Lav.
Monetary compensation in lieu of housing and public utility services where they are required by law as conditions of tbe Job.
KRiwyjoittiY
1- Data instimated Average Annual Honey Earnings of Wace-workers in Soviet Industry, Selected Years, lgpri-nT"
Average monthly money earnings of wageworkers in Sovietfor these years were reported inhe monthly averages were multiplied byo obtain the annual estimates. Thc data for these years refer to the earnings of wageworkers in large-scale industry only, and9 they also include the earnings of apprentices.
An index of average annual money earnings was computed from the various percentage changes in money and real earnings reported in Soviet publications. These reports, for various combinations of years, are described below. The average monthly money earnings level ofubleshich was reported innd the indexfrom the reported data were used to obtain the levels of money earnings in the other years.
6
Reported figures on increases in real earnings of wage workers and changes in the price level, as measured in the official cost-of-living index of the Central Statistical Administration,05 and06 were used to establish an index of money earnings560
A Soviet. Figurnov,0oted that average money earnings of wageworkers in industry roseercent0
* P.bove.
Figurnov reported that average money earnings of wage-workers in industry? wereercent above the level5 and that the level of earnings7 wasercent above that in
If, however, the index5ase year0 is moved by the reportedercent increase5he index? wouldather thaneported by Figurrn Differences in rounding probably account for thia discrepancy. Figurnov's indexas accepted, and, therefore, estimates for other years that are based onevel were checked forwith reported data on changes in real earnings and the price level. In case of disagreement, the level supported by the real earnings and price data was accepted.
4
Figurnov reported that average money earnings of wage-workers in industry43 percent above those7 and that4 levelercent Increase above0 Reported data on real earnings and the price04 Additional confirmationeport in Sotsialistlcheskly trudhat average earnings of wageworkers in industry5 wereercent above those0 andeportoviethat4 levelercent above that
In two publications, Figurnov reported that average money earnings of wageworkers in industryercent0
A Soviet source reported that average money earnings of wageworkers in industry7ercent of07 level was confirmed by reported changes in real earnings and the price
1
The index8 was based on two reports that average money earnings of wageworkers in industryercent of5 level, ^py
2
fl Soviet source reported that average money earnings in industry increasedercent0j^ Although the source does not specify whether Uie increase ls that for wageworkers or for all workers and employees in Industry, thc increases in real and money earnings given therein are compared to increases in the productivity of wageworkers, implying that the earnings data also refer to wageworkers.
0
A Soviet source reported that average money earnings of wageworkers in industry increasedercent5the earnings of workers ln producers' cooperatives, which were incorporated into the system of state enterprises
1
Thc increase in average money earnings of wageworkers1 from0 level was assumed toercent, only slightly less thanercent increase in labor productivity. Thiswas based on the concern evidenced inbout the rapid growth of earnings relative to productivity
2. Data instimated Average Annual Money Earnings of Hagcworkera in Soviet Industry, by Branch of9
Average annual money earnings of wageworkers in the various branches of Soviet industry were computed by multiplying the average earnings of wageworkers in all industry for the various years by the percentage relationships of average earnings in each branch to that for allas reported in the following sources.
a. 8
Percentage relationships were reported in two or three of the three basic sources (Mozhlna, jJi/ Orlovskiy andnd) for all branches of industry included in the table except electric power, which was reported only inSSR, and the ferrous metallurgy branch and the fur, leather, and footwear branch, which were reported only in Orlovskiy and Sergeyeva. In addition, average money earnings in some branches were reported inSSR.
0. 5
Percentage relationships were reported both inSSR and in Orlovskiy and Sergeyeva for all branches of industry included in the table except electric power and printing, which were reported only inSSR, and textiles and ferrous metallurgy, which were reported only in Orlovskiy and Sergeyeva. In addition, average money earnings in some branches were reported inSSR. SSR also reported percentage relationships8espectively, for ferrous metallurgy. These relationships,appear to exclude ore mining.
P. k, above.
c. 0
Percentage relationships were reported in Hozhina for electric power; peat; mining of nonmetallic minerals; construction materials; printing; logging and woodworking; and glass, china, and pottery. Percentage relationships were reported in Orlovskiy and Sergcyeva for petroleum, chemicals, woodworking, paper, sewing, food, and machine building and metalworking. Percentage relationships were reported in both sources for coal; ferrous metallurgy; textiles; and fur, leather, and footwear.
d. 6
Percentage relationships were reported in Hozhina for mining of nonmetallic minerals; logging and woodworking; textiles; printing; glass china, and pottery; and fur, leather, and footwear. Percentage relation ships were reported in Agonbegyan and/ for nonferrouschemicals, paper, light, food, and woodworking. Percentage relationships were reported ln both sources for electric power, coal, peat, petroleum, ferrous metallurgy, construction materials, and machine building and metalworking.
In addition, Aganbegyan and Mayer reported that,aloneelationshipo the average for all industry, and woodworkingelationship of Qk. The relationship for the entire logging and woodworkingeported in Mozhina, falls between these two.
e- 2
All percentage relationships were presented in Orlovskiy and Sergeyeva.
CIA/KR, Average Annual Honey Earnings In Soviet
, Dec to.
Central Statistical Administration. Narodnoye khozyayatvo
l godu (The National Economy of the USSR,- (hereafter rererred to as USSR, Central Statistical Administration. Barodnoye khotyaystvo)
Central Administration of Rational-Economic Accounting of
Cosplan. l"oK, (hereafterto as USSR, Trud) k. CIA. CIA/RR, An Evaluation of_the Soviet Wage,
International Population Statistics Reports,
he Soviet Statistical System: Labor Force Recordkeeping and Reporting, by Murray
M. aspredelenil promyshlennykh rabochlkh
SSSR po razxeran zarabotnoy platy" (Changes in thc Distribution of Industrial Wage Workers in the USSR According to Size of'yulleten' nauchnoy lnrorsatsii: rabotnaya plata,.
International Population Statistics Reports,
he Soviet Statistical System: Labor Force Recordkeeping and Reporting, by Hurray. Census. International Population Statistics Reports,he Soviet Statistical System: Labor Force Recordkeeping -nd Reportingy Murray. hereafter referred to as Census.
International Population Reports,
Soviet Practice in thc Classification of Economic Activity, by Andrew
. Kurs promyshlcnnoy stat'.ntlklourse.
, Kuro promyshlcnnoy^statintlkioursett72.
Fedorov, F. "Voprooy klaeslfikatsii proizvodstva" (Questions on the Classification ofeatnik atatistlkl, no.
Census. ok9.
Census, International Population Reports,he Magnitude and Distribution of Civilian Employment in the, by Hurray S. Weitaman and Andrew.
omparison of US and USSR Fnployment in Industry:
, by Murray S.-
CIA/liRl|l( (l, above).
. 3.
USSR, Central Statistical Administration. Narodnoye khozyaystvo
bove).
12- . and. ZarabotnayaSSR (Wages ln the.
Central Statistical Administration. Narodnoye khozyaystvo
bove).
and Mayer, up., above).
15- USSR, Central Statistical Administration. Karodnoyebove).
16. Aganbegyan and Mayer,, above).
17- USSR, Central Statistical Administration. Slovar'-spravochnik
po sotslal'no-ekonomicheakoy statistikc (Dictionary-Handbook of Social-Economic.ditor. Metodika sostavlenlya plana zhilishchno-kcmcunaVnogo khozyaystva (Methods of Establishing Plans for the Housing-Communal. Ekonomika truda (The Economics of.
18. USSR,.
19- Vestnik Moskovskogo Unlverslteta: seriya ekonomiki,raya, no
S.P. "Formy povysheniya real'noy zarabotnoy platy v
SSSR" (Forms of Increasing Real Wages in theotsialisticheskiy trud, no. (hereafter referred to as Figurnov, "Formy-)
Ketodologii ischisleniya real'nykheal'noy zarabotnoy platy trudyashchikbsya SSSli" (concerning Questions of Methodology in the Measurement of Real Income and Real Wages of Workers in theyulleten' nauchnoy arabotnaya plata,hereafter referred to as Figurnov,oprosy")
. Raspredeleniye poormy yego osushchestvlenlya (Distribution According to Labor and Ways of Accomplishing
ditor. Metodologlchesklye voprosy izuchenlya urovnya zhizni trudyashchikhsya (Methodological Questions in thc Study of thc Living LeveLs of- HO.
S.P. Real'naya zarabotnayaod"yen material'nogo
L'i-'sr:Increase ln the Material Weil-Being of Workers in the-
.
Ibid.
Figurnov,, above).
. Ocherkl po ekonomlke mashinostroitel'noySSSR (Essays on the Economics of the Machine Building Industry of the.
SotolaliaticiiesKly trud, no.
in,nd Orlovskditors.
/arabotnuyaronynhiontiutf lieye sovernlienstvovauiye (Wages ln Soviet Industry and Their.
Figurnov,,igurnov, op. cit. (il,.
. lonirovanli sootnoshcnlya tecpov
rosta prolzvoditel'nostleneshnoy ;ara"cotnoyrooiyshlcnnosti" (Concerning Qiestlons on Planning of theof thc Hates of Growth of Labor Productivity and .Money Wages Inoprusy planlrovonlya truda,.
Figurnov, "Formy ,K voprosy" (sJ,opstkin, oji.,learev, qd., above).
Figurnov, op.,igurnov, , above).
Kapusttn, Shkurko, and,.
Kazanskly, A.. "Velikoye sotsial'noye
zavoyevanlye" (Great Socialestnik statlatUl, no 5,
Flnanuy SSSS, no bove).
35- nd Sergeyeva, CP. Sootnoshenlye roata
arabotnoyfielatl or.ship of the Growth of Labor Productivity and Uagcu ln Soviet
36. USSH,.
if. AKanbegyon and,.
Original document.
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