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Stuck between Surplus and Shortage: Demand for Skills in Russian Industry

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  • Vladimir Gimpelson
  • Rostislav Kapeliushnikov
  • Anna Lukiyanova

Abstract

In order to remain competitive, firms need to keep the quantity and composition of jobs close to optimal for their given output. Since the beginning of the transition period, Russian industrial firms have been widely reporting that the quantity and composition of hired labour is far from being close to optimal. This paper discusses what kinds of firms in the Russian manufacturing sector are unable to optimize their employment and why. The main conclusion is that the key issue is an excess of non-viable firms and a shortage of highly efficient firms because of weak selection mechanisms. The major solution is seen in creating institutional conditions that stimulate a more efficient reallocation of labour. The analysis presented in this paper is based on data from a large-scale survey of Russian manufacturing firms. Copyright 2010 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

Suggested Citation

  • Vladimir Gimpelson & Rostislav Kapeliushnikov & Anna Lukiyanova, 2010. "Stuck between Surplus and Shortage: Demand for Skills in Russian Industry," LABOUR, CEIS, vol. 24(3), pages 311-332, September.
  • Handle: RePEc:bla:labour:v:24:y:2010:i:3:p:311-332
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    References listed on IDEAS

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    1. J. David Brown & John S. Earle, "undated". "The Reallocation of Workers and Jobs in Russian Industry: New Evidence on Measures and Determinants," Upjohn Working Papers and Journal Articles jse20031, W.E. Upjohn Institute for Employment Research.
    2. Tan, Hong & Savchenko, Yevgeniya & Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lukiyanova, Anna, 2007. "Skills Shortages and Training in Russian Enterprises," IZA Discussion Papers 2751, Institute for the Study of Labor (IZA).
    3. Anzelika Zaiceva & Klaus F. Zimmermann, 2008. "Scale, diversity, and determinants of labour migration in Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 428-452, Autumn.
    4. Kenneth J. Arrow & William M. Capron, 1959. "Dynamic Shortages and Price Rises: The Engineer-Scientist Case," The Quarterly Journal of Economics, Oxford University Press, vol. 73(2), pages 292-308.
    5. Sabirianova, Klara Z., 2002. "The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russia," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 191-217, March.
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    Citations

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    Cited by:

    1. Pavel V. Travkin, 2014. "The Returns To Training In Russia: A Difference-In-Differences Analysis," HSE Working papers WP BRP 56/EC/2014, National Research University Higher School of Economics.
    2. Mariya Aleksynska & Friederike Eberlein, 2016. "Coverage of employment protection legislation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    3. Igor B. Gurkov, 2014. "Human Resource Management In Russian Manufacturing Subsidiaries Of Multinational Corporations," HSE Working papers WP BRP 28/MAN/2014, National Research University Higher School of Economics.
    4. Israel Marques, 2014. "Firms And Social Policy In The Post-Communist Bloc: Evidence From Russia," HSE Working papers WP BRP 87/EC/2014, National Research University Higher School of Economics.
    5. Gabriela Grotkowska & Leszek Wincenciak & Tomasz Gajderowicz, 2016. "Public-private wage differential in a post-transition economy: A copula approach to the switching regression model," Working Papers 2016-19, Faculty of Economic Sciences, University of Warsaw.
    6. Jan Svejnar & Joanna Tyrowicz & Lucas van der Velde, 2015. "Productivity and Inequality Effects of Rapid Labor Reallocation – Insights from a Meta-Analysis of Studies on Transition," Working Papers 2015-11, Faculty of Economic Sciences, University of Warsaw.
    7. Marques II, Israel, 2018. "Firms and social policy preferences under weak institutions : Evidence from Russia," BOFIT Discussion Papers 7/2018, Bank of Finland, Institute for Economies in Transition.
    8. Tyrowicz, Joanna & Van der Velde, Lucas, 2017. "Labor Reallocation and Demographics," IZA Discussion Papers 11249, Institute for the Study of Labor (IZA).
    9. repec:mes:eaeuec:v:55:y:2017:i:6:p:543-556 is not listed on IDEAS
    10. Joanna Tyrowicz & Lucas van der Velde, 2014. "Can We Really Explain Worker Flows in Transition Economies?," Working Papers 2014-28, Faculty of Economic Sciences, University of Warsaw.
    11. Tatiana Karabchuk, 2012. "Part-time and temporary workers in Russia: winners or losers?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 23-39, March.
    12. Gimpelson, Vladimir & Kapeliushnikov, Rostislav, 2014. "Between Light and Shadow: Informality in the Russian Labour Market," IZA Discussion Papers 8279, Institute for the Study of Labor (IZA).
    13. Stanislaw Cichocki & Joanna Tyrowicz & Lucas van der Velde, 2017. "Cyclical Trend of Labor Reallocation in Poland: Transition and Structural Change," Eastern European Economics, Taylor & Francis Journals, vol. 55(6), pages 543-556, November.
    14. World Bank & National Research University – Higher School of Economics, 2013. "Developing Skills for Innovative Growth in the Russian Federation," World Bank Other Operational Studies 16100, The World Bank.

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