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

Author

Listed:
  • Simon Commander

    (IE Business School)

  • Zlatko Nikoloski

    (University College London)

  • Alexander Plekhanov

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

Abstract

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.

Suggested Citation

  • Simon Commander & Zlatko Nikoloski & Alexander Plekhanov, 2011. "Employment concentrat ion and resource al locat ion: one-company towns in Russia," Working Papers 130, European Bank for Reconstruction and Development, Office of the Chief Economist.
  • Handle: RePEc:ebd:wpaper:130
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    More about this item

    Keywords

    employment concentration; one-company towns; labour productivity; Russia;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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