The Labor Productivity of Household Members in the Context of Transforming Property Relations and Employment Conditions

This article considers labor productivity from the perspective of household goals and interests. In particular, it looks at hourly wages, satisfaction with pay and work in general, employment certainty, and the prospects of improving family well-being. The empirical analysis is based on data of the Russia Longitudinal Monitoring Survey Higher School of Economics (RLMS-HSE) for 1994-2017. In the theoretical part of the article, I explain how and why (1) the analysis of modern households can be brought down to the individual level, (2) work behavior can be studied through the lens of its resulting indicators, and (3) the forms of ownership and working conditions in enterprises matter for work behavior and its reflected in the measurement indicators of this behavior. The study reveals that the formerly prevailing stereotype, according to which being employed in a private enterprise was attractive for its promise of good earnings, is losing its significance. While private enterprises do, in general, offer higher wages compared to state-owned enterprises. Such wages also come with larger time costs, worse working conditions and smaller opportunities for a normal personal and family life. Employees in private enterprises, unlike their counterparts in state enterprises, are more satisfied with their wages. They also express more confidence about their employment and optimism regarding the possibility of improving the well-being of their families. Stable employment conditions (with the exception of those related to the working time) are characteristic of the vast majority of employees in Russian organizations. Labor and professional mobility is predominantly forced, and when it occurs it is also associated with negative changes in work behavior. Finally, the study reveals a paradox: while the respondents do exhibit stronger desires to devote more time to their family along with the growth in their earnings and working time, this desire does not materialize due to the compelling necessity to pursue a labor-maximizing strategy (i.e. work harder to ensure the financial well-being of the family). I argue that workers cannot break this vicious circle on their own, and it requires adjustments in the current state social policies.