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The Reallocation of Workers and Jobs in Russian Industry: New Evidence on Measures and Determinants

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  • John S. Earle

    (W.E. Upjohn Institute for Employment Research and Central European University)

  • J. David Brown

    ()
    (Heriot Watt University)

Abstract

Gross job and worker flows in Russian industry are studied using panel data from a recent survey of 530 firms selected through national probability sampling. The data permit an examination of several important measurement issues-including the timing and definition of employment, the roles of split-ups and mergers, and the relative magnitudes of rehiring and new hiring and of quits and layoffs-and they contain a rich set of firm characteristics that may affect job and worker turnover. The results imply that job destruction and worker separation rates in industrial firms rose in the early 1990s, as did job flows as a fraction of worker flows and layoffs as a fraction of separations. By contrast, job creation and worker hiring rates were flat until 1999, the former low and the latter surprisingly high. Heterogeneity in individual firm behavior increased throughout. New firms and old enterprises that have been reorganized display much larger flows compared with unreorganized enterprises. Unions appear to reduce worker flows, but the structure of neither product nor labor markets shows a significant impact. Private ownership has ambiguous effects: insider ownership, particularly by managers, is associated with higher worker flows and excess job reallocation, while outsider ownership, particularly by blockholders, is associated with lower flow rates. A measure of adjustment costs constructed from the worktime necessary to hire and train a new employee is strongly related to variables usually associated with adjustment costs, including worker wage, education, firm size, capital intensity, and labor productivity, but only weakly to job and worker turnover. Little evidence is found that firms' employment adjustments have become more sensitive to adjustment costs during the transition, but worker and manager ownership are associated with more sensitivity than are other types of ownership.

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Bibliographic Info

Paper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 02-83.

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Date of creation: Aug 2002
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Handle: RePEc:upj:weupjo:02-83

Note: A revised version of this paper was published in Economics of Transition, Vol. 11, No. 2 (June 2003). Please cite the revised version.
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Keywords: Russia; economy; work; job; flows; Earle; Brown; Upjohn;

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References

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Citations

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Cited by:
  1. John S. Earle & Klara Sabirianova Peter, 2004. "Contract Violations, Neighborhood Effects, And Wage Arrears In Russia," William Davidson Institute Working Papers Series 2004-708, William Davidson Institute at the University of Michigan.
  2. J. David Brown & John S. Earle & Volodymyr Vakhitov, . "Wages, Layoffs, and privatization: Evidence from Ukraine," Upjohn Working Papers and Journal Articles jse20064, W.E. Upjohn Institute for Employment Research.
  3. Brown, J. David & Earle, John S., 2006. "The microeconomics of creating productive jobs : a synthesis of firm-level studies in transition economies," Policy Research Working Paper Series 3886, The World Bank.
  4. Ilmakunnas, Pekka & Maliranta, Mika, 2003. "Worker Inflow, Outflow, and Churning," Discussion Papers 861, The Research Institute of the Finnish Economy.
  5. Tuuli Juurikkala & Olga Lazareva, 2012. "Non‐wage benefits, costs of turnover and labour attachment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(1), pages 113-136, 01.
  6. Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 496-520, October.
  7. Juurikkala, Tuuli & Lazareva, Olga, 2006. "Non-wage benefits, costs of turnover, and labor attachment: Evidence from Russian firms," BOFIT Discussion Papers 4/2006, Bank of Finland, Institute for Economies in Transition.
  8. Saeed Rasekhi & Saman Ghaderi, 2013. "Marginal Intra-Industry Trade and Employment Reallocation: The Case Study of Iran’s Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, vol. 13(3), pages 417-429, September.
  9. Tomasz Mickiewicz & Christopher Gerry & Kate Bishop, . "Privatisation, Corporate Control and Employment Growth: Evidence From A Panel of Large Polish Firms, 1996-2002," Working Papers 47 Key Words: employment,, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  10. Sandra M. Leitner & Robert Stehrer, 2012. "Labour Hoarding during the Crisis: Evidence for selected New Member States from the Financial Crisis Survey," wiiw Working Papers 84, The Vienna Institute for International Economic Studies, wiiw.
  11. Kőrösi, Gábor, 2005. "Vállalati munkahelyteremtés és -rombolás
    [Corporate job creation and job destruction]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 825-845.
  12. Linz, Susan J. & Semykina, Anastasia, 2008. "Attitudes and performance: An analysis of Russian workers," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 694-717, April.
  13. Kate Bishop & Tomasz Mickiewicz, 2003. "While Labour Hoarding May Be Over, Insiders’ Control Is Not. Determinants Of Employment Growth In Polish Large Firms, 1996-2001," William Davidson Institute Working Papers Series 2003-593, William Davidson Institute at the University of Michigan.
  14. J. David Brown & John S. Earle, 2003. "The reallocation of workers and jobs in Russian industry," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 221-252, June.
  15. John S. Earle & Klara Sabirianova Peter, 2006. "Complementarity and Custom in Contract Violation," Upjohn Working Papers and Journal Articles 06-129, W.E. Upjohn Institute for Employment Research.

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