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Marshall and Labour Demand in Russia: Going Back to Basics

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Author Info
Jozef Konings and Hartmut Lehmann
Jozef Konings and Hartmut Lehmann

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Abstract

Using a unique enterprise-level data set, which covers the regions Moscow City, Chelyabinsk, Krasnoyarsk and Chuvashia and the three sectors manufacturing and mining, construction and trade and distribution, we estimate Russian labour demand equations for the year 1997. The most important conclusion that can be drawn is that labour demand is inelastic in international perspective if we estimate a labour demand equation for all regions and all sectors combined. So, Russian MLEs well into the transition still exhibit peculiar behaviour as far as wage employment trade-offs are concerned. We try to relate this inelastic labour demand to basic neoclassical theory by testing Marshall's rules of derived demand. Our results show that testing these rules seems a promising avenue for establishing some of the driving forces, which are behind labour demand in Russia.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 392.

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Date of creation: 01 Aug 2001
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Handle: RePEc:wdi:papers:2001-392

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Related research
Keywords: labour demand; rules of derived demand; enterprise performance; transition to a market economy;

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Find related papers by JEL classification:
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1988. "Market Structure and Cyclical Fluctuations in U.S. Manufacturing," NBER Working Papers 2115, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Konings, Jozef & Van Cayseele, Patrick & Warzynski, Frederic, 2001. "The dynamics of industrial mark-ups in two small open economies: does national competition policy matter?," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 841-859, April. [Downloadable!] (restricted)
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  3. Levinsohn, James, 1993. "Testing the imports-as-market-discipline hypothesis," Journal of International Economics, Elsevier, vol. 35(1-2), pages 1-22, August. [Downloadable!] (restricted)
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  4. J. David Brown & John S. Earle, 2000. "Competition and Firm Performance: Lessons from Russia," William Davidson Institute Working Papers Series 296, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  5. Robert E. Hall, 1988. "The Relation Between Price and Marginal Cost in U.S. Industry," NBER Working Papers 1785, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Jozef Konings & Patrick Paul Walsh, 1999. "Employment Dynamics of Newly Established and Traditional Firms: A Comparison of Russia an the Ukraine," LICOS Discussion Papers 8199, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  7. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-47, October. [Downloadable!] (restricted)
  8. Newell, Andrew & Reilly, Barry, 1996. "The gender wage gap in Russia: Some empirical evidence," Labour Economics, Elsevier, vol. 3(3), pages 337-356, October. [Downloadable!] (restricted)
  9. Peter J. Luke & Mark E. Schaffer, 1999. "Wage Determination in Russia: An Econometric Investigation," CERT Discussion Papers 9908, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  10. Alessandro Acquisti & Hartmut Lehmann, 1999. "Job Creation and Job Destruction in Russia: Some Preliminary Evidence from Enterprise-level Data," LICOS Discussion Papers 8499, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jozef Konings & Olga Kupets & Hartmut Lehmann, 2003. "Gross Job Flows in Ukraine: Size, Ownership and Trade Effects," William Davidson Institute Working Papers Series 550, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  2. Hartmut Lehmann & Norberto Pignatti & Jonathan Wadsworth, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," CERT Discussion Papers 0504, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
    Other versions:
  3. Jaan Masso & Almas Heshmati, 2003. "The Optimality And Overuse Of Labour In Estonian Manufacturing Enterprises," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 20, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
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  4. Brown, J. David & Earle, John S., 2002. "The Reallocation of Workers and Jobs in Russian Industry: New Evidence on Measures and Determinants," IZA Discussion Papers 564, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. 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 Stephen M. Ross Business School. [Downloadable!]
  6. Martin Wall, 2003. "Estimating the Economic Impact of HIV/AIDs on the countries of the Former Soviet Union," Working Papers 1, Economics and Statistics Analysis Unit (ESAU), Overseas Development Institute. [Downloadable!]
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