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One-company towns: Scale and consequences

Author

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  • Simon Commander

    (Altura Partners, UK, IE Business School, Spain, and IZA, Germany)

Abstract

One-company towns are a relatively rare phenomenon. Mostly created in locations that are difficult to access, due to their association with industries such as mining, they have been a marked feature of the former planned economies. One-company towns typically have high concentrations of employment that normally provide much of the funding for local services. This combination has proven problematic when faced with shocks that force restructuring or even closure. Specific policies for the redeployment of labor and funding of services need to be in place instead of subsidies simply aimed at averting job losses.

Suggested Citation

  • Simon Commander, 2018. "One-company towns: Scale and consequences," IZA World of Labor, Institute of Labor Economics (IZA), pages 433-433, March.
    • Handle: RePEc:iza:izawol:journl:y:2018:n:433
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    References listed on IDEAS

    as
    1. Ralph De Haas & Steven Peolhekke, 2016. "Mining Matters: Natural Resource Extraction," OxCarre Working Papers 175, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    2. Rama, Martin & Scott, Kinnon, 1999. "Labor Earnings in One-Company Towns: Theory and Evidence from Kazakhstan," The World Bank Economic Review, World Bank, vol. 13(1), pages 185-209, January.
    3. Brown, A.N. & Ickes, B. & Ryterman, R., 1993. "The Myth of Monopoly: A New View of Industrial Structure in Russia," Papers 10-93-5, Pennsylvania State - Department of Economics.
    4. de Haas, Ralph & Poelhekke, Steven, 2016. "Mining Matters : Natural Resource Extraction and Local Business Constraints," Discussion Paper 2016-034, Tilburg University, Center for Economic Research.
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    Cited by:

    1. Ichiro Iwasaki & Yuko Adachi, 2024. "Legal Weakness, Investment Risks, and Distressed Acquisitions: Evidence from Russian Regions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(1), pages 1-69, March.

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    More about this item

    Keywords

    employment concentration; worker attachment; restructuring; unemployment;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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