In The Grip of Transition: Economic and Social Consequences of Restructuring in Russia and Ukraine
The shift from a centrally planned to a market-based economy involves, amongst other elements, the restructuring of state-owned or privatized enterprises. Realigning product lines, adopting new technology and imposing sound finances are all important stages in the integration of enterprises into world markets.
This book analyses the efficiency and equity of the economic restructuring in the two largest successor states of the Soviet Union, Russia and Ukraine. It raises important questions such as why these countries have been relatively slow to pursue restructuring policies, how the transition has affected labour markets and institutions, and how it impacted on poverty and social safety. The analysis is based on a careful examination of micro-level data, documenting the experiences of and interactions between individuals and institutions.
The paper studies the sources of gender segregation on the within-firm level and its effect on gender wage gap. In compare to numerous of papers devoted to gender segregation, this research is based on unique personnel data from one of Russian industrial firm for the period from 2002 to 2006. It’s shown that generation and fastening of segregated employment structures can be explained, firstly, by initial job assignments and, secondly, by gender differences in promotion paths for male and female workers. Estimations of the gender wage gap afford to conclude that it is largely driven by gender segregation between job positions and hierarchical levels rather than by workers’ characteristics.
In order to remain competitive, firms need to keep the quantity and composition of jobs close to optimal for their given output. Since the beginning of the transition period, Russian industrial firms have been widely reporting that the quantity and composition of hired labour is far from being optimal. This paper discusses what kinds of firms in the Russian manufacturing sector are unable to optimize their employment and why. The main conclusion is that the key issue is an excess of nonviable firms and a shortage of highly efficient firms because of weak selection mechanisms. The main solution is seen to be the creation of institutional conditions that stimulate a more efficient reallocation of labour. The analysis presented in this chapter is based on data from a large-scale survey of Russian manufacturing firms.