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Patterns of Human Capital Development in Russia: Meeting the Challenge of Market Reforms and Globalization

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  • Irina Soboleva

    ()
    (Institute of Economy, Russian Academy of Sciences)

Abstract

This paper examines post-Soviet reforms on human capital development in Russia. The primitivization of economy in the first decade of reforms resulted in growing underemployment of skilled labour that drove out two streams of brain drain, viz. one, through classical emigration, and two, through the outflow of skilled labour into a wide range of survival activities from shuttle trade to subsistence farming. The consequences of this for the Russian economy were dire as it led to the depreciation and degradation of the national human capital stock. The second decade of reforms generated controversial implications for Russia’s national human capital. On the one hand, it was characterized by the emergence and exacerbation of a wide range of supply-demand human capital mismatches. On the other hand, the revival of labour demand and the partial substitution of direct brain drain for outsourcing widened opportunities for the preservation and accumulation of national human capital.

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Bibliographic Info

Article provided by Faculty of Economics and Administration, University of Malaya in its journal International Journal of Institutions and Economies.

Volume (Year): 3 (2011)
Issue (Month): 2 (July)
Pages: 235-257

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Handle: RePEc:umk:journl:v:3:y:2011:i:2:p:235-257

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Related research

Keywords: - brain drain; human capital; outsourcing; shuttle trade; under-employment;

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  1. Bas van Leeuwen & Peter Foldvari, 2008. "How much human capital does Eastern Europe have? Measurement methods and results," Post-Communist Economies, Taylor & Francis Journals, vol. 20(2), pages 189-201.
  2. Romer, Paul M., 1990. "Human capital and growth: Theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 32(1), pages 251-286, January.
  3. Marshall, Alfred, 1920. "Industry and Trade," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number marshall1920.
  4. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  5. Viliam Druska & Byeong ju Jeong & Michal Kejak & Viatcheslav Vinogradov, 2002. "Assessing the Problem of Human Capital Mismatch in Transition Economies," William Davidson Institute Working Papers Series 467, William Davidson Institute at the University of Michigan.
  6. Trinh Le & John Gibson & Les Oxley, 2006. "A Forward-Looking Measure Of The Stock Of Human Capital In New Zealand," Manchester School, University of Manchester, vol. 74(5), pages 593-609, 09.
  7. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  8. Rasiah, Rajah, 1994. "Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia," Cambridge Journal of Economics, Oxford University Press, vol. 18(3), pages 279-98, June.
  9. Gregory, Paul R & Kohlhase, Janet E, 1988. "The Earnings of Soviet Workers: Evidence from the Soviet Interview Project," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 23-35, February.
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