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Employment concentrat ion and resource al locat ion: one-company towns in Russia

  • Simon Commander

    (IE Business School)

  • Zlatko Nikoloski

    (University College London)

  • Alexander Plekhanov

    ()

    (Principal Economist at the EBRD’s Office of the Chief Economist)

The paper looks at the effects of employment concentration on resource allocation with a particular focus on one-company towns in Russia: towns where a single company accounts for a significant share of total employment. Empirical analysis of firms’ production functions indicates that firms located in one-company towns are characterised by lower labour productivity, higher marginal capital productivity and lower overall productivity pointing towards significant labour hoarding. One-company town firms are also found to be financially more vulnerable. The paper argues that the dominance of natural resources in the Russian economy and employment concentration are closely linked.

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Paper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 130.

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Length: 35 pages
Date of creation: Jun 2011
Date of revision:
Publication status: Published in Working papers 130, European Bank for Reconstruction and Development
Handle: RePEc:ebd:wpaper:130
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Web page: http://www.ebrd.com/pages/research/publications/workingpapers.shtml

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