What Russians Really Make

What's going on in Russia? Economists are scratching their heads over the yawning gap between income and wages in post-communist Russia. Since 1990, real wages have plunged by more than 60%, while real national income has barely budged. One reason may lie in a shift in employee compensation from wages to other types of income, says Gregory Fossedal, director of emerging markets at Lehrman Bell Mueller Cannon Inc., an economic forecasting firm in Arlington, Va.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.