Employment Concentration and Resource Allocation: One-Company Towns in Russia

Simon Commander (), Zlatko Nikoloski () and Alexander Plekhanov
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Simon Commander: IE Business School, Altura Partners
Zlatko Nikoloski: London School of Economics

No 6034, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The paper looks at the effects of employment concentration on resource allocation with a particular focus on one-company towns in Russia defined as towns where a single company accounts for a significant share of total employment of the locality. Empirical analysis of firms' production functions indicates that companies located in one-company towns are characterised by lower marginal product of labour, higher marginal product of capital and lower overall productivity pointing towards significant labour hoarding. One-company town enterprises are also found to be financially more vulnerable. The paper argues that the dominance of natural resources in the Russian economy and employment concentration is closely linked.

Keywords: employment concentration; one-company towns; labour productivity; Russia (search for similar items in EconPapers)
JEL-codes: D24 J42 R23 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-10
New Economics Papers: this item is included in nep-cis, nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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