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Labor Markets in Resource-Type Regions: Shocks of 2020

  • SPATIAL FEATURES OF SECTORAL DEVELOPMENT
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Abstract

How measures to contain the spread of COVID-19 impacted labor markets almost immediately became a particular subject of attention among researchers from different countries. Already in mid-2020, estimates of the scale and consequences of pandemic shocks appeared both at the national and subnational levels. This study suggests that the shocks to which labor markets reacted in 2020 include not only restrictive measures to curb the spread of COVID-19, but also shocks to the commodity market, which had independent significance. The objective of the article is to characterize the reactions of labor markets in Russian resource-type regions to the 2020 crisis. The empirical base is comprised of Federal Service for State Statistics (Rosstat) data characterizing the state of the regional labor market by months and quarters of 2020 compared to the corresponding period in 2019. The study confirms that traditional mechanisms of corrections to the Russian labor market worked, primarily flexibility of working hours. State regulation contributed, on the one hand, to curbing the decline in employment and growth in unemployment, and on the other hand, to an increase in the level of registered unemployment. At the same time, regional labor markets reacted differently to the shocks of 2020 due to the different influence of particular recession factors, as well as different impacts of institutional changes in employment regulation. Differences in responses to the shocks of 2020 in the labor markets of resource-type regions with different levels of resource dependence are revealed.

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Notes

  1. Ministry of Economic Development of the Russian Federation. On the dynamics of industrial production. January 2021. https://www.economy.gov.ru/material/file/3fd9c6-cac43e98899dd5fd072b43a569/20210125.pdf.

  2. See also: Gimpelson, V.E., How the pandemic affected Russian unemployment estimates. https://www.rbc.ru/newsp-aper2020/ 06/26/ 5ef06fef9a79478939a1e832. Accessed December 9, 2021.

  3. See also: Ministry of Economic Development of the Russian Federation. On industrial production dynamics. January 2021. https://www.economy.gov.ru/material/file/3fd9c-6cac43e98899dd5fd072b43a569/20210125.pdf.

  4. In Khanty-Mansi Autonomous Okrug, a registry of best practices for combating the spread of new coronavirus infection was formed. https://depprirod.admhmao.ru/vse-novosti/4391429/.

  5. Unemployment benefits in Khanty-Mansi Autonomous Okrug: Who can count on what amount? https://vest-niksr.ru/news/ 30950-posobie-po-bezrabotice-v-yugre-kto-i-na-kakuyu-summu-mozhet-rasschityvat.html.

  6. In the article, the borders of Russia are considered in accordance with the Constitution of the Russian Federation adopted by popular vote on December 12, 1993, with amendments approved during the All-Russian vote on July 1, 2020.

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Funding

The study was supported by the Russian Foundation for Basic Research (project no. 19-010-00244 “Institutional Setup of the Labor Market in Resource-Type Regions”).

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Authors and Affiliations

  1. Siberian Federal University, 660041, Krasnoyarsk, Russia

    M. V. Kurbatova

  2. Kemerovo State University, 650000, Kemerovo, Russia

    I. V. Donova

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  1. M. V. Kurbatova
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  2. I. V. Donova
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Correspondence to M. V. Kurbatova or I. V. Donova.

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The authors declare that they have no conflicts of interest.

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Kurbatova, M.V., Donova, I.V. Labor Markets in Resource-Type Regions: Shocks of 2020. Reg. Res. Russ. 13, 252–259 (2023). https://doi.org/10.1134/S2079970523700600

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