Fair pay: perceived and actual levels of wages and wage inequality in Armenia in comparison to selected countries

Abstract

The study discusses wage inequality through the lenses of equity and equality theories. The study considers international wage inequality; however, the main focus of the research is wage inequality in Armenian civil service system and the way the civil servants perceive the phenomenon of wage inequality. The study explores the RA civil servants’ perception of pay fairness based on different criteria and draws conclusions as to which distributive justice rule is perceived as fair. The study has revealed that wage inequality is growing worldwide and as the societies grow more unequal they value equity over equality. The study has also revealed a number of drawbacks in the Armenian civil service system that raise the issue of equity and fairness. The study ends with appropriate recommendations to eliminate the drawbacks of the Armenian civil service remuneration system and suggestions for policy actions to prevent the increasing wage inequality.