Theoretical Foundations of the Relationship between Labor Productivity and Wage

Issues concerning the relationship between productivity and wages are directly linked to attempts to assess the outcomes of human labor. As the intellectual component of labor increases and the share of services grows, the challenge of quantifying labor becomes increasingly acute. This article examines the evolution of theoretical approaches to understanding productivity and wages — from the mercantilists and the classical school to the new neoclassical synthesis. The study reveals a trend toward an increasing role of the human factor and greater attention to intrinsic motivation when examining the relationship between labor productivity and wages. The contemporary understanding of the productivity–wage nexus is gradually moving away from purely market-based concepts toward incorporating the socio-psychological dimensions of labor relations. The findings may be used to develop recommendations for improving the remuneration system in the Russian Federation.