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

In: In the Grip of Transition: Economic and Social Consequences of Restructuring in Russia and Ukraine

Author

Listed:
  • 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 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 main solution is seen to be the creation of institutional conditions that stimulate a more efficient reallocation of labour. The analysis presented in this chapter is based on data from a large-scale survey of Russian manufacturing firms.

Suggested Citation

  • Vladimir Gimpelson & Rostislav Kapeliushnikov & Anna Lukiyanova, 2012. "Stuck Between Surplus and Shortage: Demand for Skills in Russian Industry," Studies in Economic Transition, in: Tilman Brück & Hartmut Lehmann (ed.), In the Grip of Transition: Economic and Social Consequences of Restructuring in Russia and Ukraine, chapter 2, pages 47-75, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-36359-5_3
    DOI: 10.1057/9780230363595_3
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    Cited by:

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    2. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    3. Karabchuk, Tatiana, 2012. "Part-time and temporary workers in Russia: winners or losers?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 23-39.
    4. Thomas F. Remington & Israel Marques, 2014. "The Reform Of Skill Formation In Russia: Regional Responses," HSE Working papers WP BRP 19/PS/2014, National Research University Higher School of Economics.
    5. 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 Emerging Economies (BOFIT).
    6. Vladimir Gimpelson & Aleksey Oshchepkov, 2012. "Does more unemployment cause more fear of unemployment?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-26, December.
    7. 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.
    8. 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.
    9. 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.
    10. Igor Gurkov, 2016. "Human resource management in Russian manufacturing subsidiaries of multinational corporations," Post-Communist Economies, Taylor & Francis Journals, vol. 28(3), pages 353-372, July.
    11. 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.
    12. Tyrowicz, Joanna & van der Velde, Lucas, 2018. "Labor reallocation and demographics," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 381-412.
    13. 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.
    14. Marques, Israel & Remington, Thomas & Bazavliuk, Vladimir, 2020. "Encouraging skill development: Evidence from public-private partnerships in education in Russia’s regions," European Journal of Political Economy, Elsevier, vol. 63(C).
    15. 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.
    16. Gimpelson, Vladimir & Kapeliushnikov, Rostislav, 2014. "Between Light and Shadow: Informality in the Russian Labour Market," IZA Discussion Papers 8279, IZA Network @ LISER.
    17. Olga Kupets, 2018. "Employer‐provided training, innovation and skills in post‐Soviet countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(4), pages 725-768, October.
    18. World Bank, 2011. "Challenges to Enterprise Performance in the Face of the Financial Crisis : Eastern Europe and Central Asia," World Bank Publications - Books, The World Bank Group, number 2316, April.
    19. Thomas F. Remington, 2017. "Closing the Skills-Jobs Gap: Russia and China Compared," HSE Working papers WP BRP 53/PS/2017, National Research University Higher School of Economics.
    20. 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.
    21. Mariia Maksimova, 2019. "The return to non-cognitive skills on the Russian labor market," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 53, pages 55-72.
    22. Kupets, Olga, 2018. "Investment in human capital in post-Soviet countries: Why are firms not training more?," CEI Working Paper Series 2017-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    23. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    24. World Bank & National Research University – Higher School of Economics, 2013. "Developing Skills for Innovative Growth in the Russian Federation," World Bank Publications - Reports 16100, The World Bank Group.
    25. Vasyl Kvartiuk & Martin Petrick & Miroslava Bavorova & Zuzana Bednaříková & Elena Ponkina, 2020. "A Brain Drain in Russian Agriculture? Migration Sentiments among Skilled Russian Rural Youth," Europe-Asia Studies, Taylor & Francis Journals, vol. 72(8), pages 1352-1377, September.

    More about this item

    Keywords

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    JEL classification:

    • 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

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