Comparison of Volume and Distribution of Non-Agricultural Employment in the U.S.S.R., 1928-1955, with the U.S., 1870-1952

Abstract

THE volume and distribution of employment have traditionally been of interest to economists as indications of economic structure. This concept is difficult to define rigorously, but, among other things, it involves estimates of the relative importance of the various economic sectors estimates which can be expressed in terms such as value added by sector, or the sector's share in total investment, capital stock, or employment. The large number of possible indicators suggests that conclusions drawn from an employment study should be checked against other economic data. Even alone, however, employment distributions provide valuable insights into economic structure. What is the employment structure in the Soviet Union? How does it differ from that in other countries? Do the changes in employment distribution suggest inferences significant for an interpretation of Soviet economic development? These questions point to the usefulness of an international comparison, despite its many perils. A U.S.S.R.-U.S. comparison seems a good starting point for several reasons: (i) Certain generally similar characteristics such as size, and diversity and abundance of resources are shared by the two countries. (2) Other characteristics of the two economies (such as the degree of industrial development, labor force distribution between agricultural and nonagricultural occupations, and rates of over-all investment) have been similar, though not occurring simultaneously.' (3) The United States is a good benchmark for American students because its economy is familiar and the data more readily understandable and available. Employment sectors in the U.S.S.R. are not rigorously comparable with those in the United States because classifications and coverage differ. However, by rearranging categories in both countries and by excluding military personnel from the American data, significant comparisons can be made.2