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Pay and employee intrapreneurialism in Russia, 1994–2015: A longitudinal study

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  • Croucher, Richard
  • Morrison, Claudio
  • Rizov, Marian

Abstract

We examine whether a high wage–high employee intrapreneurial inputs model remains a significant feature of the Russian economy. We do so by estimating the evolution of employee ‘intrapreneurial’ contributions to companies in Russia, 1994–2015, using Akerlof’s theory of ‘partial gift exchange’. Akerlof (1982) suggests that employee discretionary contributions to organizational capacities rise when pay exceeds employee perceptions of ‘fair’ pay in comparable employment. Using the extensive Russian Longitudinal Monitoring Survey (RLMS), we find that overall employee intrapreneurial contributions significantly declined, 1994– 2015, mirroring the declining Akerlof wage premium. Intrapreneurialism in highly informalized sectors was associated with labour market pressures. We extend Akerlof’s theory to recognize intrapreneurial activity associated with coercive labour market pressures in the secondary labour market.

Suggested Citation

  • Croucher, Richard & Morrison, Claudio & Rizov, Marian, 2023. "Pay and employee intrapreneurialism in Russia, 1994–2015: A longitudinal study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(2), pages 246-260.
    • Handle: RePEc:zbw:espost:272921
    DOI: 10.1111/emre.12524
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    References listed on IDEAS

    as
    1. Croucher, Richard & Rizov, Marian, 2011. "Employees’ entrepreneurial contributions to firms in Russia, 1995-2004," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 21(4), pages 415-431.
    2. World Bank, 2017. "Russia Economic Report, November 2017, No. 38," World Bank Publications - Reports 28930, The World Bank Group.
    3. Jeremy Morris & Sarah Hinz, 2017. "Free automotive unions, industrial work and precariousness in provincial Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 29(3), pages 282-296, July.
    4. Thornberry, Neal, 2001. "Corporate entrepreneurship:: antidote or oxymoron?," European Management Journal, Elsevier, vol. 19(5), pages 526-533, October.
    5. Lenka Wildnerova & Hansjörg Blöchliger, 2019. "What makes a productive Russian firm? A comparative analysis using firm-level data," OECD Economics Department Working Papers 1592, OECD Publishing.
    6. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    7. Ksenia V. Rozhkova & Sergey Yu. Roshchin & Sergey A. Solntsev, 2018. "Wage Adjustment Policies In Russian Firms," HSE Working papers WP BRP 205/EC/2018, National Research University Higher School of Economics.
    8. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
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