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Skills Shortages and Training in Russian Enterprises

Hong Tan (), Yevgeniya Savchenko (), Vladimir Gimpelson, Rostislav Kapelyushnikov () and Anna Lukyanova ()
Additional contact information
Hong Tan: World Bank
Yevgeniya Savchenko: World Bank
Rostislav Kapelyushnikov: Higher School of Economics, Moscow
Anna Lukyanova: Higher School of Economics, Moscow

No 2751, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: In the transition to a market economy, the Russian workforce underwent a wrenching period of change, with excess supply of some industrial skills coexisting with reports of skill shortages by many enterprises. This paper uses data from the Russia Competitiveness and Investment Climate Survey and related local research to gain insights into the changing supply and demand for skills over time, and the potential reasons for reported staffing problems and skill shortages, including labor turnover, compensation policies and the inhibiting effects of labor regulations. It discusses in-service training as an enterprise strategy for meeting staffing and skill needs, and presents evidence on the distribution, intensity and determinants of in-service training in Russia. It investigates the productivity and wages outcomes of in-service training, and the supportive role of training in firms’ research and development (R&D) and innovative activities. A final section concludes with some policy implications of the findings.

Keywords: human capital; skills; training; employment protection legislation; transition; Russia (search for similar items in EconPapers)
JEL-codes: J23 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cis, nep-lab and nep-tra
Date: 2007-04
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