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Employment concentration and resource allocation: one-company towns in Russia

Commander, Simon, Nikoloski, Zlatko and Plekhanov, Alexander (2011) Employment concentration and resource allocation: one-company towns in Russia. Working paper no.130. European Bank for Reconstruction and Development.

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The paper looks at the effects of employment concentration on resource allocation with a particular focus on one-company towns in Russia defined as towns where a single company accounts for a significant share of total employment of the locality. Empirical analysis of firms’ production functions indicates that companies located in one-company towns are characterized by lower marginal product of labour, higher marginal product of capital and lower overall productivity pointing towards significant labour hoarding. One-company town enterprises are also found to be financially more vulnerable. The paper argues that the dominance of natural resources in the Russian economy and employment concentration is closely linked.

Item Type: Monograph (Working Paper)
Official URL:
Additional Information: © 2011 The Authors
Library of Congress subject classification: D History General and Old World > DK Russia. Soviet Union. Former Soviet Republics
H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: L - Industrial Organization > L0 - General
Sets: Research centres and groups > LSE Health
Identification Number: Working paper no.130
Date Deposited: 13 Sep 2012 11:42

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