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

Author

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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.

Suggested Citation

  • Irina Soboleva, 2011. "Patterns of Human Capital Development in Russia: Meeting the Challenge of Market Reforms and Globalization," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 235-257, July.
  • Handle: RePEc:umk:journl:v:3:y:2011:i:2:p:235-257
    as

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    File URL: http://ijie.um.edu.my/RePEc/umk/journl/v3i2/Fulltext5.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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 279-298, June.
    3. 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.
    4. Marshall, Alfred, 1920. "Industry and Trade," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number marshall1920.
    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, September.
    7. 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.
    8. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
    9. 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.
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    More about this item

    Keywords

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

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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