Why is Unemployment Low in the Former Soviet Union?
Author | : Simon Commander |
Publisher | : World Bank Publications |
Total Pages | : 28 |
Release | : 1996 |
Genre | : Manpower planning |
ISBN | : |
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Author | : Simon Commander |
Publisher | : World Bank Publications |
Total Pages | : 28 |
Release | : 1996 |
Genre | : Manpower planning |
ISBN | : |
Author | : Simon Commander |
Publisher | : |
Total Pages | : 20 |
Release | : 1996 |
Genre | : Desempleo - Union Sovietica |
ISBN | : |
Author | : Simon Commander |
Publisher | : |
Total Pages | : |
Release | : 1999 |
Genre | : |
ISBN | : |
June 1996 The authors explain why in the Former Soviet Union (FSU) - especially Russia - unemployment has remained low and employment in state and privatized firms has remained high, while at the same time the informal or unofficial economy has grown swiftly. They trace this development to a combination of factors, including the control regime of state and privatized firms, the nature of worker compensation, and privatized firms, and the nature of subsidies or financial supports that firms continue to receive. Firms have remained the primary site for social protection. Subsidies for social benefits have effectively been a subsidy to employment and have promoted the workers' continuing attachment to these firms. Partly because the subsidies still flow and partly because of the firms' internal control structure, firms have held back on shedding labor. Firms typically work at low capacity. Instead of laying workers off, they significantly cut hours and wages, sometimes through wage arrears. The share of worker compensation that is nonmonetary had grown during the transition, and is significant. So workers search for additional sources of income, either moonlight or get involved in the informal economy. Why has this happened? Privatization has so far failed to keep firms from behaving as if they have important social responsibilities. Managers may have more discretion in decisionmaking, but seem to be reluctant to fire workers. This reluctance reflects various pressures, including insider coalitions and pressure from local and federal governments to limit the flow to unemployment. One factor may be the need to keep workers cooperative and possibly repel outsider interest. And in the FSU, many firms continue to operate under soft budget constraints, so they are under less pressure to reduce employment levels than firms in Eastern and Central Europe. The authors show that under certain conditions if the subsidy to insider-dominated firms disappears, those firms will scale down employment and the provision of benefits. In a firm with two divisions - one that produces and one that provides benefits - the dominant (producing) division will tend to close down the benefits-providing division if the firm assumes a simple majority decision rule.
Author | : Simon John Commander |
Publisher | : |
Total Pages | : 28 |
Release | : 2016 |
Genre | : |
ISBN | : |
June 1996The authors explain why in the Former Soviet Union (FSU) - especially Russia - unemployment has remained low and employment in state and privatized firms has remained high, while at the same time the informal or unofficial economy has grown swiftly. They trace this development to a combination of factors, including the control regime of state and privatized firms, the nature of worker compensation, and privatized firms, and the nature of subsidies or financial supports that firms continue to receive. Firms have remained the primary site for social protection. Subsidies for social benefits have effectively been a subsidy to employment and have promoted the workers' continuing attachment to these firms. Partly because the subsidies still flow and partly because of the firms' internal control structure, firms have held back on shedding labor. Firms typically work at low capacity. Instead of laying workers off, they significantly cut hours and wages, sometimes through wage arrears. The share of worker compensation that is nonmonetary had grown during the transition, and is significant. So workers search for additional sources of income, either moonlight or get involved in the informal economy. Why has this happened? Privatization has so far failed to keep firms from behaving as if they have important social responsibilities. Managers may have more discretion in decisionmaking, but seem to be reluctant to fire workers. This reluctance reflects various pressures, including insider coalitions and pressure from local and federal governments to limit the flow to unemployment. One factor may be the need to keep workers cooperative and possibly repel outsider interest. And in the FSU, many firms continue to operate under soft budget constraints, so they are under less pressure to reduce employment levels than firms in Eastern and Central Europe. The authors show that under certain conditions if the subsidy to insider-dominated firms disappears, those firms will scale down employment and the provision of benefits. In a firm with two divisions - one that produces and one that provides benefits - the dominant (producing) division will tend to close down the benefits-providing division if the firm assumes a simple majority decision rule.
Author | : David Granick |
Publisher | : Cambridge University Press |
Total Pages | : 368 |
Release | : 1987-09-25 |
Genre | : Business & Economics |
ISBN | : 9780521332958 |
The book is concerned with the right of an employee of a Soviet state enterprise to keep his existing job, unless he/she voluntarily quit it to search for another, and with the maintaining of overfull employment in all regional labor markets of the Soviet Union. The author hypothesises that over most other objectives to preserving these conditions favorable for labor. This hypothesis is contrasted with that which explains the low unemployment and low dismissal rate in the Soviet Union simply by the oberheating of the economy, finding a parallel here with capitalist economies in high-boom periods. The novelty of the book is twofold. It is the first examination of the Soviet economy from the theoretic viewpoint described above. Second, it is a full length treatment of labor markets in the Soviet Union and is the first study of such markets since that of Abram Bergson published in the 1940s. Indeed, no similar treatment of labor markets exists for any centrally planned socialist economy.
Author | : |
Publisher | : World Bank Publications |
Total Pages | : 294 |
Release | : 2005-01-01 |
Genre | : Business & Economics |
ISBN | : 0821361961 |
Annotation This title looks at ways governments can promote the creation of more and better jobs in the region. It addresses the question of why labour market outcomes have been disappointing during the transition, and suggests policy interventions to promote firms' investment, job creation and economic development.
Author | : United States. Central Intelligence Agency |
Publisher | : |
Total Pages | : 30 |
Release | : 1966 |
Genre | : Disguised unemployment |
ISBN | : |
Author | : J.L. Porket |
Publisher | : Springer |
Total Pages | : 263 |
Release | : 1989-06-18 |
Genre | : Social Science |
ISBN | : 1349109304 |
A book distinguishing between the situation in the labour market and the utilization of the employed labour force in the Soviet Union. The author attempts to show that since the abolition of open registered unemployment in 1930 the economy has suffered from chronic and general overmanning.
Author | : Janice Bell |
Publisher | : Routledge |
Total Pages | : 238 |
Release | : 2013-09-13 |
Genre | : Business & Economics |
ISBN | : 1134436262 |
The emergence of open unemployment is an unavoidable consequence of postcommunist transition. Some countries-notably in the former Soviet Union-initially slowed economic contraction. But in the longer run slower reformers have generally sustained deeper and more prolonged recessions than faster reforming central European countries. Moreover, the initially low unemployment rates in the former Soviet Union are now rising, and may stabilise at higher post-transition equilibrium rates than in Central Europe.
Author | : Guy Standing |
Publisher | : International Labour Organization |
Total Pages | : 458 |
Release | : 1991 |
Genre | : Arbeidsmarkt |
ISBN | : 9789221077442 |
Perestroika in the Soviet Union has necessitated a radical transformation of the labour market. This book encompasses a broad range of views of labour policy-makers and economists from the USSR and abroad. It analyzes recent developments in employment, unemployment, wages and social protection.