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Marshall and Labour Demand in Russia: Going Back to Basics

Jozef Konings and Hartmut Lehmann and Jozef Konings and Hartmut Lehmann
Authors registered in the RePEc Author Service: Hartmut Lehmann () and Jozef Konings

No 392, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: Using a unique enterprise-level data set, which covers the regions Moscow City, Chelyabinsk, Krasnoyarsk and Chuvashia and the three sectors manufacturing and mining, construction and trade and distribution, we estimate Russian labour demand equations for the year 1997. The most important conclusion that can be drawn is that labour demand is inelastic in international perspective if we estimate a labour demand equation for all regions and all sectors combined. So, Russian MLEs well into the transition still exhibit peculiar behaviour as far as wage employment trade-offs are concerned. We try to relate this inelastic labour demand to basic neoclassical theory by testing Marshall's rules of derived demand. Our results show that testing these rules seems a promising avenue for establishing some of the driving forces, which are behind labour demand in Russia.

Keywords: labour demand; rules of derived demand; enterprise performance; transition to a market economy (search for similar items in EconPapers)
JEL-codes: J20 J23 M51 P31 (search for similar items in EconPapers)
Pages: pages
Date: 2001-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Marshall and Labor Demand in Russia: Going Back to Basics (2002) Downloads
Working Paper: Marshall and Labor Demand in Russia: Going Back to Basics (2002) Downloads
Working Paper: Marshall and Labour Demand in Russia: Going Back to Basics (2001) Downloads
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