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Labor Market Model: Institutional Dynamics and Features in Russia

Labor Market Model: Institutional Dynamics and Features in Russia

Journal of Economic Regulation, , Vol. 10 (no. 3),

The article analyzes a modern model of Russian labor market that can be called unique. Russian labor market is represented by a combination of differentiated regional markets, which are slightly connected. Differences between regional labor markets affect a whole range of parameters - level of employment and unemployment, level of demand for labor and spread of informal employment, level of remuneration, etc. Therefore, importance of studying regional labor markets is obvious. Russian model of labor market is characterized, on the one hand, by a weak correlation of level of employment and unemployment with the economic processes, and, on the other hand, by the flexibility of real wages. Labor market institutions in Russia ensure maintenance of high levels of employment, restraining growth of unemployment. The indicated feature of Russian labor market model determines specific advantages and disadvantages, primarily of regional labor markets. In addition, special attention is paid to analysis of dynamics of employment, as well as to directions of state economic policy. It is predicted that ongoing decline in working-age population will continue in medium term. For effective functioning of labor market, it is necessary to find balance between active and passive measures that will promote employment and ensure social protection in periods of instability.

Keywords: labor market; unemployment; government policy on market labour

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