Table Of ContentStudies in Economic Transition
General Editors: Jens Hölscher, Reader in Economics, University of Brighton; and Horst
Tomann, Professor of Economics, Free University Berlin
This series has been established in response to a growing demand for a greater understand-
ing of the transformation of economic systems. It brings together theoretical and empirical
studies on economic transition and economic development. The post-communist transi-
tion from planned to market economies is one of the main areas of applied theory because
in this field the most dramatic examples of change and economic dynamics can be found.
The series aims to contribute to the understanding of specific major economic changes as
well as to advance the theory of economic development. The implications of economic
policy will be a major point of focus.
Titles include:
Tilman Brück and Hartmut Lehmann (editors)
IN THE GRIP OF TRANSITION: Economic and Social Consequences of Restructuring in
Russia and Ukraine
Lucian Cernat
EUROPEANIZATION, VARIETIES OF CAPITALISM AND ECONOMIC PERFORMANCE IN
CENTRAL AND EASTERN EUROPE
Bruno Dallago and Ichiro Iwasaki (editors)
CORPORATE RESTRUCTURING AND GOVERNANCE IN TRANSITION ECONOMIES
Bruno Dallago (editor)
TRANSFORMATION AND EUROPEAN INTEGRATION
The Local Dimension
Hella Engerer
PRIVATIZATION AND ITS LIMITS IN CENTRAL AND EASTERN EUROPE
Property Rights in Transition
Saul Estrin, Grzegorz W. Kolodko and Milica Uvalic (editors)
TRANSITION AND BEYOND
Daniela Gabor
CENTRAL BANKING AND FINANCIALIZATION
A Romanian Account of How Eastern Europe became Subprime
Oleh Havrylyshyn
DIVERGENT PATHS IN POST-COMMUNIST TRANSFORMATION
Capitalism for All or Capitalism for the Few?
Iraj Hoshi, Paul J.J. Welfens and Anna Wziatek-Kubiak (editors)
INDUSTRIAL COMPETITIVENESS AND RESTRUCTURING IN ENLARGED EUROPE
How Accession Countries Catch Up and Integrate in the European Union
Björn Jindra
INTERNATIONALISATION THEORY AND TECHNOLOGICAL ACCUMULATION
An Investigation of the Multinational Affiliates in East Germany
Mihaela Keleman and Monika Kostera (editors)
CRITICAL MANAGEMENT RESEARCH IN EASTERN EUROPE
Managing the Transition
David Lane (editor)
THE TRANSFORMATION OF STATE SOCIALISM
System Change, Capitalism, or Something Else?
David Lane and Martin Myant (editors)
VARIETIES OF CAPITALISM IN POST-COMMUNIST COUNTRIES
Jens Lowitzsch
FINANCIAL PARTICIPATION OF EMPLOYEES IN THE EU-27
Enrico Marelli and Marcello Signorelli (editors)
ECONOMIC GROWTH AND STRUCTURAL FEATURES OF TRANSITION
Tomasz Mickiewicz
ECONOMIC TRANSITION IN CENTRAL EUROPE AND THE COMMONWEALTH OF
INDEPENDENT STATES
ECONOMICS OF INSTITUTIONAL CHANGE
Central and Eastern Europe Revisited (Second Edition)
Milan Nikolić
MONETARY POLICY IN TRANSITION
Inflation Nexus Money Supply in Post-communist Russia
Julie Pellegrin
THE POLITICAL ECONOMY OF COMPETITIVENESS IN AN ENLARGED EUROPE
Stanislav Poloucek (editor)
REFORMING THE FINANCIAL SECTOR IN CENTRAL EUROPEAN COUNTRIES
Johannes Stephan (editor)
TECHNOLOGY TRANSFER VIA FOREIGN DIRECT INVESTMENT IN CENTRAL AND
EASTERN EUROPE
Horst Tomann
MONETARY INTEGRATION IN EUROPE
Pasquale Tridico
INSTITUTIONS, HUMAN DEVELOPMENT AND ECONOMIC GROWTH IN TRANSITION
ECONOMIES
Milica Uvalic
SERBIA’S TRANSITION
Towards a Better Future
Hans van Zon
RUSSIA’S DEVELOPMENT PROBLEM
The Cult of Power
The full list of titles is available on the website: www.palgrave.com/economics/set.asp
Studies in Economic Transition
Series Standing Order ISBN 978 0–333–73353–0
(outside North America only)
You can receive future titles in this series as they are published by placing a standing order.
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In the Grip of Transition:
Economic and Social
Consequences of
Restructuring in
Russia and Ukraine
Edited by
Tilman Brück
Department of Development and Security, DIW Berlin – German Institute for
Economic Research and Humboldt-University of Berlin, Germany
and
Hartmut Lehmann
Department of Economics, University of Bologna, Italy and Institute for
the Study of Labor (IZA), Germany
Editorial and Selection Matter © Tilman Brück
and Hartmut Lehmann 2012
Individual Chapters © Contributors 2012.
Softcover reprint of the hardcover 1st edition 2012 978-0-230-30310-2
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
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save with written permission or in accordance with the provisions of the
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permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work
in accordance with the Copyright, Designs and Patents Act 1988.
First published 2012 by
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ISBN 978-1-349-33801-6 ISBN 978-0-230-36359-5 (eBook)
DOI 10.1057/9780230363595
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10 9 8 7 6 5 4 3 2 1
21 20 19 18 17 16 15 14 13 12
To Eliana, Amália and Marta
Tilman Brück
To Lisa Maria and Simonetta
Hartmut Lehmann
Contents
List of Tables ix
List of Figures xiii
Notes on Contributors xiv
Introduction 1
Tilman Brück and Hartmut Lehmann
1 Worker Displacement in Russia and Ukraine:
A Comparative Analysis using Micro Data 7
Hartmut Lehmann, Alexander Muravyev, Norberto Pignatti,
Tiziano Razzolini and Anzelika Zaiceva
2 Stuck Between Surplus and Shortage: Demand
for Skills in Russian Industry 47
Vladimir Gimpelson, Rostislav Kapeliushnikov
and Anna Lukiyanova
3 Innovation, Adoption, Ownership and Productivity:
Evidence from Ukraine 76
J. David Brown, John S. Earle, Hanna Vakhitova
and Vitaliy Zheka
4 The Evolution of Labour Relations inside
a Russian Firm during Late Transition:
Evidence from Personnel Data 98
Hartmut Lehmann and Anzelika Zaiceva
5 Gender Segregation Within Firms:
Causes and Consequences 128
Inna Maltseva and Daria Nesterova
6 The Effect of Transition on Women
in Ukrainian Industry: An Exploration
of the ULFS Panel Data 156
Tom Coupé and Hartmut Lehmann
vii
viii Contents
7 Labour Market Restructuring and Poverty:
Household Evidence from Ukraine 173
Tilman Brück, Alexander M. Danzer, Natalia Danzer
and Alexander Muravyev
8 Social Security Impact on Labour Market
Developments and Industrial Restructuring
in Russia and Ukraine 205
Marek Góra
Index 235
Tables
1.1 Job displacement rates in Russia, 2003–2008 20
1.2 Job displacement rates in Ukraine, 2002–2006 22
1.3 Displacements and quits in Russia: multinomial
logit estimation, 2003–2008 24
1.4 D isplacements and quits in Ukraine: multinomial
logit estimation, 2003–2006 27
1.5 Cumulative return rates for job movers
in Russia, 2003–2008 29
1.6 C umulative return rates for job movers
in Ukraine, 2003–2006 30
1.7 Discrete piecewise proportional hazard estimates
of jobless spell excluding movements into
retirement in Russia, 2003–2008 32
1.8 Discrete piecewise proportional hazard estimates
of jobless spell excluding movements into
retirement in Ukraine, 2003–2006 36
1.A1 Selected economic indicators for Russia and Ukraine 40
1.A2 R easons for leaving job classification:
ULMS and RLMS 42
2.1 D istribution of enterprises by
the optimality of staffing 53
2.2 D istribution of enterprises by difference between
actual and desired employment 54
2.3 D istribution of surveyed enterprises by staffing
with various skill groups 55
2.4 D istribution of surveyed enterprises by general
staffing and staffing of particular skill groups 55
2.5 Major reasons for labour surplus and shortage 56
2.6 D istribution of enterprises under-staffed with
various skill groups, by degrees of difficulty
in searching for and hiring various skill groups 57
2.7 C haracteristics of firms by the optimality
of staffing levels 59
2.8 Determinants of staffing: all employees,
multinomial logit 61
ix
x List of Tables
2.9 Job creation and job destruction by firms with
different levels of staffing 63
2.10 In-service training by staffing levels 65
2.11 D eterminants of in-service training:
probit models, marginal effects 66
2.12 D eterminants of in-service training for
skill groups: probit models, marginal effects 68
2.A1 General characteristics of the Russia ICS sample 72
2.A2 D eterminants of staffing: professionals,
multinomial logit 73
2.A3 Determinants of staffing: skilled
blue-collar workers, multinomial logit 73
2.A4 Determinants of staffing: unskilled workers,
multinomial logit 74
3.1 M eans and standard deviations for determinants
of investment regressions 83
3.2 M eans and standard deviations for productivity
growth regressions 83
3.3 I ncidence and magnitude of investment
expenditures by ownership type 88
3.4 D eterminants of firm non-tech, R&D, and IT
investment: ownership, market share,
export orientation and size 89
3.5 Returns to non-tech, R&D and IT investment 91
3.6 Returns to disaggregated IT investment 93
4.1 Composition of workforce, 1997 to 2002 104
4.2 Distribution of components of average real
monthly compensation 105
4.3 Real wage growth 1997–2002 by employee category 109
4.4 Evolution of earnings inequality measured
by GINI coefficients 114
4.5 Hiring and separation rates, 1997–2002 115
4.6 H iring and separation rates 1998–2001
in sample of regional firms 115
4.7 Differences between average wages in firm
and average wages in sample of industrial firms
in the region in 1997 roubles, 1998–2002 115
4.8 Earnings and segregation into levels of production
workers by gender for 2002 119
