Methodological issues of modeling of the efficiency of labor in the russian defense industry enterprises

Abstract: The article highlights main factors affecting productivity of enterprises in the defense industry. With the elimination of a number of factors, we determined functional dependence form between the change in productivity (at the company level in comparison to the industry average) and relative wages (at the company level in comparison to the industry average taking into account regional factor). It is shown that dependence is of exponential character and is marked by inelasticity of productivity with respect to wages. This means that the growth of employees’ wages in comparison to average levels for the industry to which the enterprise belongs, as well as average levels for the federal subject in which the enterprise is located, leads to workforce productivity increase, however, the rate of increase slows down with further wage growth. Levels of wage growth (in relation to industry averages adjusted for regional factor) maximizing enterprises’ target values are determined with specific features of such enterprises (manufacturing of both military and civilian products) taken into account