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Skills Shortages and Training in Russian Enterprises

Author

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  • Tan, Hong

    (World Bank)

  • Savchenko, Yevgeniya

    (Georgetown University)

  • Gimpelson, Vladimir

    (University of Wisconsin-Madison)

  • Kapeliushnikov, Rostislav

    (CLMS, Higher School of Economics, Moscow)

  • Lukiyanova, Anna

    (NRU HSE, Moscow)

Abstract

In the transition to a market economy, the Russian workforce underwent a wrenching period of change, with excess supply of some industrial skills coexisting with reports of skill shortages by many enterprises. This paper uses data from the Russia Competitiveness and Investment Climate Survey and related local research to gain insights into the changing supply and demand for skills over time, and the potential reasons for reported staffing problems and skill shortages, including labor turnover, compensation policies and the inhibiting effects of labor regulations. It discusses in-service training as an enterprise strategy for meeting staffing and skill needs, and presents evidence on the distribution, intensity and determinants of in-service training in Russia. It investigates the productivity and wages outcomes of in-service training, and the supportive role of training in firms’ research and development (R&D) and innovative activities. A final section concludes with some policy implications of the findings.

Suggested Citation

  • Tan, Hong & Savchenko, Yevgeniya & Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lukiyanova, Anna, 2007. "Skills Shortages and Training in Russian Enterprises," IZA Discussion Papers 2751, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2751
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    References listed on IDEAS

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    8. Hong Tan & Lopez-Acevedo, Gladys, 2003. "Mexico : in-firm training for the knowledge economy," Policy Research Working Paper Series 2957, The World Bank.
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    Citations

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    Cited by:

    1. 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.
    2. Mok, Penny & Mason, Geoff & Stevens, Philip & Timmins, Jason, 2012. "A Good Worker is Hard to Find: Skills Shortages in New Zealand Firms," Occasional Papers 12/5, Ministry of Economic Development, New Zealand.
    3. Brixiova, Zuzana & Li, Wenli & Yousef, Tarik, 2009. "Skill shortages and labor market outcomes in Central Europe," Economic Systems, Elsevier, vol. 33(1), pages 45-59, March.
    4. 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.
    5. 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.
    6. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, September.
    7. repec:zbw:bofitp:2018_007 is not listed on IDEAS
    8. 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.
    9. Maliranta, Mika & Asplund, Rita, 2007. "Training and Hiring Strategies to Improve Firm Performance," Discussion Papers 1105, The Research Institute of the Finnish Economy.
    10. Danilovich, Hanna & Croucher, Richard, 2015. "Investment in personnel and FDI in Belarusian companies," International Business Review, Elsevier, vol. 24(6), pages 966-971.
    11. World Bank, 2010. "Albania - The New Growth Agenda : A Country Economic Memorandum," World Bank Publications - Reports 2935, The World Bank Group.
    12. Roshchin, S. & Travkin, P., 2015. "Job-Related Training on Russian Enterprises," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 150-171.
    13. 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.
    14. 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, December.
    15. World Bank, 2009. "Mauritius - Investment Climate Assessment," World Bank Publications - Reports 3185, The World Bank Group.
    16. Travkin, Pavel, 2014. "The impact of the on-the-job training on Russian worker’s salary: The effect of abilities approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 51-70.
    17. 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.
    18. 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.
    19. Lilas Demmou & Andreas Wörgötter, 2015. "Boosting Productivity in Russia: Skills, Education and Innovation," OECD Economics Department Working Papers 1189, OECD Publishing.
    20. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2008. "Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows," World Bank Publications - Books, The World Bank Group, number 6445, December.
    21. Tan,Hong W. & Bashir,Sajitha & Tanaka,Nobuyuki, 2016. "Skill use, skill deficits, and firm performance in formal sector enterprises : evidence from the Tanzania enterprise skills survey, 2015," Policy Research Working Paper Series 7672, The World Bank.
    22. Natalia Ermasova & Lam Nguyen & Dina Clark & Sergey Ermasov, 2018. "The Management Skills of Russians: Do Work, Management, and Government Experiences Matter?," Public Organization Review, Springer, vol. 18(3), pages 299-312, September.
    23. 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.

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    More about this item

    Keywords

    human capital; transition; skills; training; employment protection legislation; Russia;
    All these keywords.

    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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