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Labor Hoarding in Russia: Where Does it Come From?

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  • Rouslan Koumakhov
  • Boris Najman

Abstract

The paper focuses on the labor "hoarding" problem in Russian. We studied two forms of "hoarding": unpaid leaves and short-time work. Our research is based on the Russian Longitudinal Monitoring Survey (RLMS) database. The paper exploits individual panel data between 1994 and 1996. We show that unpaid leaves and short-time work do not represent a form of hidden unemployment. Both types of labor "hoarding" reflect the nature of employees' professional competencies. First, unpaid leaves concern primarily the employees with firm-specific knowledge, while short-time work affects strongly unskilled workers. Second, external mobility is mostly related to young people and unskilled blue-collar workers while employees with specific competencies do not change jobs so much. The paper insists on significant internal adjustments which are taking place through unpaid leaves and short-time work. This explains why there has been no massive unemployment in Russia until now. In conclusion, Russian labor market is characterized rather by internal flexibility than by labor "hoarding".

Suggested Citation

  • Rouslan Koumakhov & Boris Najman, 2001. "Labor Hoarding in Russia: Where Does it Come From?," William Davidson Institute Working Papers Series 394, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2001-394
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    References listed on IDEAS

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    1. Fay, Jon A & Medoff, James L, 1985. "Labor and Output over the Business Cycle: Some Direct Evidence," American Economic Review, American Economic Association, vol. 75(4), pages 638-655, September.
    2. Richard Layard & Andrea Richter, 1995. "How much unemployment is needed for restructing: the Russian experience," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(1), pages 39-58, March.
    3. Gimpelson, Vladimir & Lippoldt, Douglas, 1999. "Labour Turnover in Russia: Evidence from the Administrative Reporting of Enterprises in Four Regions," Transition Economics Series 4, Institute for Advanced Studies.
    4. Susan J. Linz, 1998. "Job Rights in Russian Firms: Endangered or Extinct Institution?," William Davidson Institute Working Papers Series 128, William Davidson Institute at the University of Michigan.
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    Cited by:

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    2. Marek Gora & Grzegorz Kula & Magdalena Rokicka & Oleksandr Rohozynsky & Anna Ruzik, 2008. "Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms," ESCIRRU Working Papers 5, DIW Berlin, German Institute for Economic Research.
    3. Ivan Samson & Patrick Ternaux, 2008. "Innovative Economic Behaviour in Russia: the Case of Labour Markets," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 63-85.

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    More about this item

    Keywords

    labor market; internal adjustments; flexibility. Russia; skills;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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