Russia's Regions: Income Volatility, Labor Mobility and Fiscal Policy
19 Pages Posted: 3 Nov 2005
There are 3 versions of this paper
Russia's Regions: Income Volatility, Labor Mobility, and Fiscal Policy
Russia's Regions: Income Volatility, Labor Mobility and Fiscal Policy
Date Written: October 2005
Abstract
Russia's regions are heavily exposed to regional income shocks because of an uneven distribution of natural resources and a Soviet legacy of heavily skewed regional specialization. Also, Russia has a limited mobility of labor and lacks fiscal instruments to deal with regional shocks. We assess how these features influence the magnitude and persistence of regional income shocks, through a panel vector auto-regression, drawing on extensive and unique regional data covering the last decade. We find that labor mobility associated with regional shocks is far lower than in the US yet higher than in the EU-15, and that regional expenditures tend to expand in booms and contract in recessions. We discuss institutional factors behind these outcomes and policy implications.
Keywords: Russia, fiscal policy, panel VAR, labor mobility
JEL Classification: C33, E62, H77, J61, P52
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Institutional Determinants of Labor Reallocation in Transition
By Katherine Terrell and Tito Boeri
-
By John C. Ham, Jan Svejnar, ...
-
Gross Worker and Job Flows in a Transition Economy: An Analysis of Estonia
By John Haltiwanger and Milan Vodopivec
-
Returns to Mobility in the Transition to a Market Economy
By Tito Boeri and Christopher J. Flinn
-
Gross Job Flows in Russian Industry Before and after Reforms: Has Destruction Become More Creative?
By J. David Brown and John S. Earle
-
Gross Job Flows in Russian Industry Before and after Reforms: Has Destruction Become More Creative?
By J. David Brown and John S. Earle
-
Determinants of Interregional Mobility in Russia: Evidence from Panel Data
By Yuri Andrienko and Sergei Guriev
-
Migration and Regional Adjustment to Asymmetric Shocks in Transition Economies
By Jan Fidrmuc
-
Migration and Adjustments to Shocks in Transition Economies
By Jan Fidrmuc