Russian Labor Market Research Articles

Public Education Policy and Youth Precariat

The study analyzes precarization in the context of state educational policy and university graduates' employment. The literature review was prepared by the PRISMA method (Preferred Reporting Items for Systematic Reviews and Meta-Analyses). The data of the three focus groups formed an empirical basis for identifying and analyzing institutional factors related to public education policy. The hypothesis that higher education programs do not meet the needs of the modern labor market has been confirmed, which leads to unstable employment of graduates. The reasons for unstable youth employment are related to the gap between the educational and economic policies: inflated expectations, lack of personal initiative, heterogeneity in the quality of higher education, the particularities of industries and professions, as well as the specificities of the Russian labor market. There are mechanisms to overcome negative effects and adapt to technological, institutional, and economic changes. These mechanisms include developing a state system for supporting young specialists, improving the institutions of information interaction between universities, businesses, and graduates, creating horizontal networks of graduates to promote their interests in the labor market.

Features of the formation and functioning of the Russian labor market

Features of the formation and functioning of the Russian labor market

Does flexible migration policy spur competitiveness in the labor market? A case of migrants in the Russian Federation

With the influx of labor migrants across the globe and developed countries being on the receiving end, countries like the Russian Federation have implemented strict migration policies to check the inflow of these migrants, mainly from low-income countries. However, with theoretical underpin the increase in labor migrants brings about competitiveness in the receiving countries labor market. The current study evaluates whether the Russian labor migration policy promotes competitiveness given the characteristics of labor migrants in Russia. The study carried out panel data analysis for 14 countries within Russian region and an aggregated data from the rest of the world using the non-stationary heterogeneous panel model and estimators of mean group and pooled mean group. The result first presents strong cointegration between wage levels and labor supply (immigrant, emigrants, and native workforce). The result then reveals a negative effect of immigrants inflow and native workforce on wage levels in the short run but a positive effect, in the long run, suggesting that the labor migrants inflow is imperfectly substitutable in the Russian labor market. The result also shows a positive effect of migration policy on wages both in the short and long run, indicating that the strict migration policy can hinder the competitiveness of the labor force in the labor market.

PLATFORM EMPLOYMENT IS THE MAIN TREND OF LABOR MARKET DEVELOPMENT IN MODERN CONDITIONS

The relevance of the study lies in the fact that today the infrastructural development of the labor market is associated primarily with digital platforms, which are the main tool for balancing supply and demand in terms of employer and jobseeker activity. The emergence of digital platforms has changed the organization and structure of the labor market. The coronavirus pandemic has further contributed to the development of employment on service-oriented and web-based platforms. Russian business, in order to reduce its costs, began to willingly use the services of freelancers. However, the regime of the self-employed, today, does not imply social guarantees, the consolidation of which in Russian legislation will contribute not only to an increase in the number of «legal» selfemployed, but also to the country’s economy as a whole.
 The article reveals the role of platform employment as the main tool for compensating for structural problems or shifts when capable, but not employed people appear in society. The main advantages and disadvantages of digital platforms for workers, employers and the economy as a whole are characterized. The aim of this work is to study platform employment as the main trend in the development of the labor market in Russia, to identify the advantages and risks of platform employment, as well as tools for its regulation.

30 lat rosyjskiej polityki imigracyjnej i jej znaczenie z perspektywy Federacji Rosyjskiej i obszaru poradzieckiego

The article aims to analyze the immigration politics of the Russian Federation from the perspective of the last three decades after the collapse of the Soviet Union. We have considered its importance from the point of view of the domestic and foreign policy of the state. Since 2000, with the beginning of Vladimir Putin’s first presidency, we have been observing a significant increase in the importance of the immigration policy of the Russian Federation, which was an important component of the Russian population policy and one of the key instruments to counteract the deepening depopulation of the state. However, the growing popularity of labor migration to the Russian Federation and the low effectiveness of managing migration flows resulted in a massive influx of irregular migrants, which have used some of the Russian political circles to fuel anti-immigration sentiments. Because of this politics, since 2007, we have been observing a gradual departure from the earlier model of immigration policy, open to labor migration from the Commonwealth of Independent States, towards a policy limiting the influx of Muslim migrants from Central Asia. At the same time Russian government have invited Russian-speaking people from the post-Soviet area to settle in Russia. The introduced restrictions allowed the Russian Federation to use the facilitation of access to the Russian labor market as an instrument encouraging the political and economic integration of the post-Soviet states within the structures controlled by the Russian Federation. The increase in the political component of immigration policy did not change the fact that it was thanks to the influx of people from the post-Soviet area that Russia avoided the depopulation that is currently observed in Ukraine. Analyzing the situation of the Russian Federation and its politics towards the post-Soviet region, the realistic paradigm was used as it best reflects the specificity of the region.

Мировые научно-технологические тренды и вызовы рынку труда в России

 Foreign and Russian studies demonstrate a rapid change in the global scientific and technological landscape. Based on the review of analytical studies, the most important technological innovations are Internet of Things; big data; smart manufacturing; combining robots, nanotechnology and artificial intelligence, etc. The effect of technological transformations is already manifesting itself in almost all spheres of society, including leading to radical restructuring in the labor market. In particular, new technologies contribute to the withering away of professions that performed by machines, and the emergence of new professions associated with the management of new technological processes. It is obvious that one of the keys to successful adaptation to promising scientific and technological trends at the national level is the timely restructuring of the personnel training system, taking into account the current and future needs of the labor market. Consequently, the world scientific and technological trends themselves, and the transformation of the labor market in Russia caused by them, require a timely and effective response from the national authorities. First, the state is the largest customer in the personnel training system and is able to take measures to provide the economy with the necessary specialists. Second, new technologies and new professions require appropriate regulations. Third, the subordination of the general development strategy of Russia to the requirements of global production and service modernization is seen as a vital factor in maintaining national competitiveness.

Russian Labour Market Amidst Coronavirus Pandemic

The article reflects the results of a statistical analysis of signifcant changes in the Russian labour market in 2020 amidst the spread of coronavirus infection. The study presents the results of a labour force survey organized for the frst time in Russia (following the ILO recommendations) through telephone interviews of respondents based on a representative sample.The author analyzed the transformation of the Russian labour market in both the Russian Federation as a whole and regions using different group forming criteria, in particular, types of economic activity, sectors of the economy, various socio-demographic characteristics of the population (gender, age, place of residence, etc.). The paper outlines the dynamics and structure of employment (including part-time work) and unemployment, as well as the results of a comparative analysis of the unemployment rate in Russia and a number of foreign countries. Other indicators of labour underutilization, including the potential labour force, are considered.To conduct a comprehensive analysis of the effects of the pandemic on the Russian labour market transformation indicators of dynamics of employees' wages are considered along with indicators of employment. At the same time, special attention is given to the analysis of the situation of personnel remuneration during the most severe period of the viral pandemic – in April 2020

Labor Markets in Resource-Type Regions

The modern economic literature has accumulated enough data indicating that labor markets have local specifics, and a single all-Russian labor market is an abstraction. Therefore, the characterization of the Russian labor market as a system of separate regional markets is very important. The purpose of this paper is to determine the functional characteristics of the labor markets of resource-type regions, to identify the features of their state. We used Rosstat data for 2005–2006, 2008, 2013, 2016–2019, as well as microdata from a sample labor force survey conducted by Rosstat in 2019. It is shown that the factor of resource dependence has some effect on the parameters of regional labor markets, but only in combination with other factors (climatic, demographic, spatial, structural and sectoral). In various regions the influence of this factors can be very different. The cluster analysis made it possible to identify some effects of the influence of the resource dependence on labor markets. Firstly, only a very high level of resource dependence of regions is accompanied by a positive and complex influence on regional labor markets. Secondly, resource dependence of regions provides labor market parameters at least at the national average. From the point of view of state regulation labor markets in regions with a high level of resource dependence deserve special attention. At the same time, the main area of activity should be efforts to diversify the economy at the expense of resource rent. This requires the development of new approaches to the interaction of regional authorities with mining companies based in resource-type regions.

Institutional Barriers to The Growth of Human Capital of Highly-Skilled Professionals

The factors that currently determine Russian professionals' quality of human capital is analised in the article. Authors use the multinomial logistic regression and methods of content analysis based on the data of the RLMS HSE in 2019 and the FCTAS RAS in 2021. It is shown that the main role in the processes of accumulation and renewal of their human capital is played by factors related to the specific of socio-economic institutions in Russia. Employment in the main sectors of the Russian economy – industry, trade and services – does not require professionals to further increase their human capital. The concentration of enterprises from industries where highly qualified specialists are usually in demand in the most urbanized regions causes an unequal distribution of high-quality human capital between large cities and other localities. It is also shown that the influence of age on the processes of accumulation of human capital is nonlinear. The possibility to get into the group with the highest quality of human capital for professionals are drained even before the age of 40. At the same time, from the age of 45, the chances for them to have human capital with its typical quality for highly-skilled professionals begin to decrease, which is associated with discrimination in the Russian labor market of older workers and the inexpediency for them to invest in their human capital in these conditions. The results show how difficult it will be in the current conditions and considering the inevitable aging of the population to implement the plans of the country's leadership to increase the share of high-tech enterprises and increase labor productivity without changing the institutional environment.

The effect of health shocks on labour market outcomes in Russia

Abstract This study examines the effects of individual health shocks on labour market outcomes in the Russian Federation during the period 2000–2018. Employing data from the Russia Longitudinal Monitoring Survey—Higher School of Economics, we demonstrate that adverse health shocks have negative consequences for employment, wages, and income. We find that the effects are strongest for males, the less educated, those on lower incomes, those in middle-ranking and professional occupations, and for those experiencing the most severe health shocks. However, consistent with our knowledge of the Russian labour market, we also observe that the wage and income elasticities are considerably higher than the employment elasticities and above those reported for other countries. Understanding how to attenuate the negative labour market consequences associated with health shocks is paramount and we, therefore, consider the potential role that labour, health and social policies can play in mitigating risk.

Supply in the Russian labor market: gender aspect

The article deals with the economic activity of the Russian population both in general and in the gender aspect. The main attention in the work is focused on the relationship between the economic activity of population and wages. The objectives of the work are, firstly, to identify differences in the behavior of men and women in the labor market in terms of economic activity, and, secondly, to test the hypothesis on the relationship between the economic activity of population and wages. The article provides an overview of the factors affecting the size of labor force and the level of participation in it, as well as statistical data reflecting male and female economic activity in modern Russia. Analysis of the labor activity dynamics leads to the conclusion that there are significant differences in male and female behavior in the labor market. The main cause of these differences is the traditional views of the population on the roles of men and women in society. Also the regression equations connecting the level of economic activity with the average real wage are determined both for the population of the Russian Federation as a whole, and for men and women separately. These equations can be considered as modified functions of the labor supply. Calculations have shown that, despite the general linear nature of the dependence of the economic activity level of population on real wages, its growth leads, ceteris paribus, to an accelerating increase in the activity of men and a slowing increase in the activity of women. The revealed low elasticity of labor supply functions indicates that any significant impact on the level of labor activity can only be provided by significant increase in real wages. First of all, the last statement applies to women.

The youth’s perceptions of the labor market in Russia, China and Germany: A comparative analysis

The study of the specifics of professional choice and of the factors that determine labor orientations of the youth is one of the urgent sociological tasks for researchers all over the world. The universal, supranational nature of this task under globalization explains the need to compare labor orientations of the Russian youth with their foreign peers. The article aims at assessing the basic ideas about the labor market of the youth in Russia, Germany and China. The empirical part of the article is presented by the survey and interviews of the Russian, German and Chinese youth. The author considers typical problems that the young professionals face when searching for a job, their opinions on the most important work qualities, similarities and differences in the perception of the ideal worker. Young people in Russia, Germany and China name different aspects of working life as the most important: Russian respondents value wages and the stability of organization more than the Chinese and especially German. On the other hand, German and Chinese students prefer activities that reveal personal creativity and leave space for personal life. Considering social capital, unlike their peers from Germany and China, Russian respondents do not associate the fact of having a university diploma with potential success in the labor market. More often than the Chinese and Germans respondents, the Russian youth mention nepotism and corruption as an obstacle to successful employment. Among the similar social perceptions of the respondents from three countries, one can name the difficulties associated with the lack of work experience. The interaction of educational institutions and employers can help in overcoming the difficulties that the young Russians face when searching for a job.

Pandemic and gender inequality in the labor market: challenges for Russia

The scientific article is devoted to the research analysis of modern trends and challenges in the labor market in Russia. The relevance of the problem is due to the fact that due to the Covid19 pandemic, there is a negative impact on the macroeconomic stability and sustainability of economic entities, due to which the dynamics of the demand of organizations for labor is gradually decreasing. The object of the research is the dynamics of the development of the labor market of the Russian economy. The subject is the labor market. Within the framework of the article, the degree of influence of the coronavirus pandemic and gender inequality on the current trends in the labor market in Russia is determined.

Developing team competencies of mining engineers in collaborative learning under the CDIO concept

The problem of forming team competencies among future mining specialists in response to modern challenges of the Russian labor market in the coal mining industry is investigated. Many domestic universities are modernizing their educational programs in accordance with CDIO (Conceive–Design–Implement–Operate) standards in order that students master engineering skills in line with the Think–Design–Implement–Manage model. The CDIO concept is focused on the development of systemic, creative and critical thinking, task-setting and problem-solving skills, as well as on teamwork in the course of engineering. The level of team competency development among future mining engineers in transition to FSES 3++ is identified, and the effectiveness of the collaborative approach to the formation of team competencies in the educational process of a university is proved. The study involved 135 students of various courses of the National Research Tomsk Polytechnic University specializing in mining, geological exploration technology and applied geology. Monitoring of the team competency development among students was carried out through observation, project team working results, questionnaires, interviews and the executed work apprehension by the students. The authors have revealed the criteria and levels of the team competency. The studies show that most mining engineering students have medium-level team competencies. The theoretical and empirical research allowed the authors to formulate specific pedagogical recommendations to handle this problem.The study was supported by the Russian Foundation for Basic Research, Project No. 19-29-07350.

Universities’ Training Programs Congruence to the Needs of the Regional Labour Market: Sectoral Analysis

The authors of this article are carrying out the analysis of the students’ training programs congruence to the sectoral structure of employment in 84 Russian regions using the sectoral model concept and the index of structural differences. The paper presents a methodological approach to assessing the congruence of training programs with the needs of the regional labor market in Russia. The level of regional higher education systems differentiation, the sectoral structure of graduates, and the level of their employment in the regional context were determined applying economic and statistical methods. The ratio of the graduates’ supply to their demand analyzed, there is presented a classification of regions according to the levels of this ration, conclusions drawn on the balance of higher education systems in the regions, taking into account the needs for training. A structural and professional disproportion between regional labor markets and regional systems of higher education in most regions of Russia is diagnosed, as well as a number of imbalances concerning specialists’ training in the secondary sector of the economy, which is decisive for the development of high-tech in dustries and provides the need for personnel within the new digital economy. The directions for overcoming dysfunction of the relationship between universities and the labor market are identified. The results of the study make it possible to make decisions on improving the policy of distributing the planned contingent of students by training programs in accordance with the needs of regional economies.

Practice-oriented education in universities as a tool to reduce structural unemployment in the Russian labor market

Practice-oriented education in universities as a tool to reduce structural unemployment in the Russian labor market

The return to master’s degree in the Russian labor market

Though master’s programmes are rapidly gaining attention from students, evidence concerning the labor market returns to master’s degree remains scarce. There is a widespread opinion that Russian employers can barely distinguish between graduates with bachelor’s and master’s degree making it unreasonable to pursue a graduate degree. This paper contradicts this opinion. Based on a unique administrative dataset about employment of Russian HEI graduates in 2020, this study reveals a significantly positive association between master’s degree acquisition and labour market outcomes one year after graduation. Master’s degree increases probability of employment by 3—8% in male sample and by 10—16% in female sample, respectively. Moreover, graduate degree is associated with a wage premium of 5—21% for females and 2—11% for males. Despite a short period of time passed after the Bologna reform, Russian labour market encourages having a graduate degree, though the size of the premium varies drastically between fields of study and types of university.

“Physicists” and “lyricists”: Whom the Russian labor market values higher?

In this study, we raise a simple question: do STEM (Science, Technology, Engineering and Math) education and employment provide a monetary return to professionals with this specialization and holding STEM jobs? If yes, what is the premium across ages and cohorts? We compare wages of professionals with the STEM education and without it, holding STEM jobs and those working in alternative positions, and with various combinations of education and jobs. We estimate premiums for the whole sample as well as for different age groups and cohorts. For this, we use various large data sets with variables for college majors and occupational positions. The main conclusion is that the STEM specialization brings no significant benefits compared to non-STEM majors and jobs. The premium does not emerge over experience or age; moreover, older groups engaged in STEM-related work tend to experience a wage penalty. As we move from younger to older age cohorts, the wage growth declines which means that wages for younger age cohorts catch up and take over the older ones, even if they were initially lower. These results are reproduced on all available datasets.

Assessing the Impact of Employment in the Informal Sector of the Economy on Labor Market Development

The paper analyzes employment in Russia’s informal sector based on its spatial and dynamic characteristics. In recent years, the Russian labor market has been characterized by a steady growth of employment rates in the informal sector of the economy, high volatility and territorial differentiation of such employment, and its ambiguous effect on the gross value added and productivity. Given slowing economic growth and reduced productivity, this trend is by no means positive. The database for this study is based on Rosstat data from 83 Russian regions over the period between 2006 and 2020. The research explains the territorial and dynamic features of employment in the informal sector and classifies Russian regions by their employment situation in the informal sector of the economy. We hypothesize that the instability of the labor market is driven by higher rates of employment in the informal sector. To assess employment volatility in the informal sector, we identify the main trends of intersectoral labor mobility and evaluate their intensity. The results distinguish between regions with negative and positive effects. We also reveal problem regions experiencing the negative effects of intersectoral mobility and high or very high rates of employment in the informal sector. The findings can be used to diagnose and monitor regional labor markets, productivity dynamics, and changes in employment as well as to develop national employment programs to ensure the sustainable development of the labor market.

Labour market status and depression in Russia: A longitudinal study, 2011-2017.

This is the first longitudinal study to examine the relationship between depression and the labour market in Russia. Using data from 2011 to 2017, we identify the impact that not being in employment has on mental distress, and we explore the mechanism underlying the observed association. Using data from the Russia Longitudinal Monitoring Survey - Higher School of Economics, we employ random-effects regression models to estimate the impact of employment conditions on the likelihood of reporting mental distress in Russia. This method allows us to distinguish between the selection effect associated with mental distress and direct causation. Controlling for a range of socio-economic and demographic characteristics, we find that unemployment and labour market inactivity are strong predictors of the likelihood of reporting depression and serious nervous breakdown. However, we find that rather than negative labour market events giving rise to mental distress, the selection effect actually dominates, and the direction of causality therefore operates in reverse. Knowledge of the underlying mechanism that links unfavourable labour market outcomes with mental distress is crucial for designing policies that can address this link. We argue that our findings provide grounds for the initiation of anti-stigma campaigns among employers, policymakers, health practitioners and politicians as well as the general population. Eradication of the perception that mental disorders are somehow different to 'real' illnesses will not only prevent Russians from self-selection into unemployment but may also transform outdated approaches to mental health care in Russia.