The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russia

Abstract

This paper employs data from the Russian Longitudinal Monitoring Survey, a nationwide panel, to inquire into the magnitude, determinants, and directions of occupational mobility in Russia from 1985 to 1998. We find that the restructuring process increased the rate of occupational reallocation, and structural changes account for a substantial part of the increase in occupational mobility. The empirical analysis shows that increased occupational mobility in transitional Russia is associated with the destruction of existing jobs and occupations and the creation of new opportunities. Local outside opportunities and the scale of structural change also determine the extent of occupational mobility. The findings suggest that unexpected demand shocks increase the number of unconventional career switches, including downward occupational mobility. J. Comp. Econ., March 2002, 30(1), pp. 191–217. William Davidson Institute, Wyly Hall, First Floor, 724 East University Avenue, Ann Arbor, Michigan 48109-1234. © 2002 Elsevier Science (USA).Journal of Economic Literature Classification Numbers: J21, J24, J41, J42, J62, P23, P50.