Layard, Richard and Richter, Ansgar (1995) How much unemployment is needed for restructuring? The Russian experience. CEP Discussion Papers (CEPDP0238). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
Full text not available from this repository.Abstract
Open unemployment in Russia has been growing very slowly - by only about 1 percentage point a year. This is mainly because of a degree of wage flexibility unknown in the West. Comparing industries over a two year period we find that, if relative employment fell by 10%, relative wages fell by 24%. Redundancies have been very low - only 1.5% of the work force in 1993. There has, however been a substantial redeployment of labour job to job movement - with a hiring rate of 21% of the workforce in 1993. The paper then discusses the reasons for this wage flexibility - in terms of the unemployment aversion of workers and the financial and other incentives facing managers. Finally, it appraises the ''Russian way'' and argues that it is better than having large-scale open unemployment, provided the under-employed workers kept in enterprises do not impede the internal restructuring of the enterprises.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk/_new/publications/series.asp?... |
| Additional Information: | © 1995 The Authors |
| Divisions: | Economics Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J63 - Turnover; Vacancies; Layoffs J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search |
| Date Deposited: | 12 Aug 2013 11:22 |
| Last Modified: | 15 Sep 2023 22:42 |
| URI: | http://eprints.lse.ac.uk/id/eprint/51643 |
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