Structural decomposition of interregional differences in labor productivity in Russia in 2010—2023

The article presents structural analysis of interregional disparities in labor productivity levels and growth rates across Russia. The study aims to uncover structural foundations of spatial differentiation in labor productivity by comparing its static (levels) and dynamic (growth rates) aspects. It examines the roles of industrial specialization, resource allocation efficiency, and intra-industry disparities, and assesses the contribution of these factors to interregional income inequality. The analysis utilizes data on the subject of the Russian Federation for 2010—2023, broken down by economic activity (excluding extractive indust­ ries) and adjusted for regional price differentials. The shift-share analysis is employed to decompose the deviation of regional indicators from the national average into sectoral, localization, and regional components. The results reveal a persistent trend toward convergence in labor productivity levels but a growing divergence in growth rates. The factor of sectoral structure diversity contributed in the least to these processes, often promoting regional convergence. The second most influential factor was the concentration of production in regions, reflecting agglomeration effects: it fostered divergence in productivity levels but countered it in growth rates. The most significant influence came from regional differences in within-industry labor productivity. Combinations of shift-share decomposition components define distinct models of labor productivity level and growth formation in the regions. Simulation-based calculations assess the direction and magnitude of structural components’ impact on labor productivity growth in shaping interregional inequality in per capita GRP.