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Ownership and Employment in Russian Industry: 1992-1995


  • Susan Linz


Using data collected from a panel of 6,205 civilian manufacturing firms located in the Central, Volga, North Caucasus, Northern and Western Siberian regions of Russia, this paper examines the hypotheses that in the first stage of the transition process (1) Russian industry exhibited a low labor elasticity, and (2) employment changes were highly correlated with ownership structure. The first section summarizes what we know about output and employment patterns in Russian industry between 1992 and 1995. In section two, characteristics of the panel are described. Section three describes the methodology employed to test the two hypotheses. Section four presents the empirical results. In particular, given the socialist production and employment patterns Russia inherited, the results from the panel data regressions indicate that manufacturing firms in Russia experienced an unsustainably low elasticity of labor in the first stage of the transition process. However, ownership structure tends not to be a major influence on employment change for these Russian firms. Section five offers concluding remarks.

Suggested Citation

  • Susan Linz, 1998. "Ownership and Employment in Russian Industry: 1992-1995," William Davidson Institute Working Papers Series 138, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:1998-138

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    Cited by:

    1. Linz, Susan J. & Semykina, Anastasia, 2008. "Attitudes and performance: An analysis of Russian workers," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 694-717, April.
    2. Ichiro Iwasaki, 2007. "Enterprise Reform And Corporate Governance In Russia: A Quantitative Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(5), pages 849-902, December.

    More about this item


    Russian enterprises; transition; ownership; employment;

    JEL classification:

    • P42 - Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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