IDEAS home Printed from https://ideas.repec.org/p/hig/wpaper/53-ps-2017.html
   My bibliography  Save this paper

Closing the Skills-Jobs Gap: Russia and China Compared

Author

Listed:
  • Thomas F. Remington

    () (National Research University Higher School of Economics)

Abstract

Around the world employers complain of shortages of skilled workers. Meantime, educational and training institutions often function as “bridges to nowhere.” This has implications for both social and economic development. When VET systems are ineffective, they either turn out individuals with skills that are poorly matched to the demands of the labor market, or replicate existing social divisions between rich and poor. Economic inequality, both cross-sectional and spatial, undermines the ability of educational and skill-forming institutions to equalize opportunities for young people to acquire skills usable in the labor market. This bifurcates society between a low-wage, low-skill, often informal employment sector, and a higher-skill, higher-wage sector. This problem has grown more acute everywhere as a result of automation and globalization. For this reason, experts and policy-makers around the world have called for upgrading the quality and effectiveness of vocational education and training (VET), in particular by encouraging closer cooperation between employers and schools. They seek to adapt elements of the German and other continental systems where apprenticeships are the most common pathway leading from school to jobs. Building firm-school partnerships requires overcoming two sets of collective action dilemmas, however: coordinating the interests of firms around setting professional standards and curricular goals, and establishing cooperation between employers and schools. The paper argues that cooperative arrangements vary along two dimensions: the “breadth” of collaboration by schools and firms, i.e. how many firms and schools pool their efforts to upgrade VET; and the “depth” of commitment, that is, how costly is the joint commitment by firms and schools to VET. The evidence suggests that there is typically a trade-off between deepening and broadening. The paper compares China and Russia --two large, relatively decentralized countries with different economic systems—with respect to current efforts to close the gap between skills and jobs. It draws conclusions about the nature of the circumstances under which reforms are likely to result in greater deepening or broadening of cooperation. The paper argues that the formation of effective institutions for resolving collective dilemmas result from government initiatives mobilizing existing capacities to respond to challenges in the external environment

Suggested Citation

  • 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.
  • Handle: RePEc:hig:wpaper:53/ps/2017
    as

    Download full text from publisher

    File URL: https://wp.hse.ru/data/2017/11/28/1161791184/53PS2017.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
    2. Prashant Loyalka & Xiaoting Huang & Linxiu Zhang & Jianguo Wei & Hongmei Yi & Yingquan Song & Yaojiang Shi & James Chu, 2016. "The Impact of Vocational Schooling on Human Capital Development in Developing Countries: Evidence from China," World Bank Economic Review, World Bank Group, vol. 30(1), pages 143-170.
    3. repec:eme:rleczz:s0147-912120170000045006 is not listed on IDEAS
    4. Tan, Hong & Savchenko, Yevgeniya & Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lukiyanova, Anna, 2007. "Skills Shortages and Training in Russian Enterprises," IZA Discussion Papers 2751, Institute for the Study of Labor (IZA).
    5. Yingyi Qian & Barry R. Weingast, 1996. "China's transition to markets: market-preserving federalism, chinese style," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 1(2), pages 149-185.
    6. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
    7. repec:taf:rjapxx:v:10:y:2005:i:1:p:26-55 is not listed on IDEAS
    8. Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
    9. Jin, Hehui & Qian, Yingyi & Weingast, Barry R., 2005. "Regional decentralization and fiscal incentives: Federalism, Chinese style," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1719-1742, September.
    10. repec:cup:apsrev:v:95:y:2001:i:04:p:875-893_40 is not listed on IDEAS
    11. Kenneth J. Arrow & William M. Capron, 1959. "Dynamic Shortages and Price Rises: The Engineer-Scientist Case," The Quarterly Journal of Economics, Oxford University Press, vol. 73(2), pages 292-308.
    12. Vladimir Gimpelson & Rostislav Kapeliushnikov & Anna Lukiyanova, 2010. "Stuck between Surplus and Shortage: Demand for Skills in Russian Industry," LABOUR, CEIS, vol. 24(3), pages 311-332, September.
    13. Peter Cappelli, 2014. "Skill Gaps, Skill Shortages and Skill Mismatches: Evidence for the US," NBER Working Papers 20382, National Bureau of Economic Research, Inc.
    14. Martin Carnoy & Prashant Loyalka & Gregory Androushchak & Anna Proudnikova, 2012. "The Economic Returns to Higher Education in the BRIC Countries and their Implications for Higher Education Expansion," HSE Working papers WP BRP 02/EDU/2012, National Research University Higher School of Economics.
    15. Waikei R Lam & Xiaoguang Liu & Alfred Schipke, 2015. "China’s Labor Market in the “New Normal”," IMF Working Papers 15/151, International Monetary Fund.
    16. Müge Adalet McGowan & Dan Andrews, 2017. "Labor Market Mismatch and Labor Productivity: Evidence from PIAAC Data," Research in Labor Economics,in: Skill Mismatch in Labor Markets, volume 45, pages 199-241 Emerald Publishing Ltd.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Vocational Education and Training (VET); Public-Private Partnerships; skills-jobs gap; China; Russia;

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hig:wpaper:53/ps/2017. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamil Abdulaev) or (Victoria Elkina). General contact details of provider: http://edirc.repec.org/data/hsecoru.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.