Working Paper: NBER ID: w12998
Authors: Guido Friebel; Elena Panova
Abstract: We study how transition has affected human resource policies of a Russian heavy industry firm. Our data set contains personnel files of 1538 white-collar workers over 17 years: from 1984 to 2000. We find career paths before the first year of Gaidar's reforms, 1992, when Russian transition to a market economy began. After 1992, promotions are blocked, because both (i) more managers are hired from the outside, and (ii) fewer managers leave the firm. A possible reason is an extremely weak outsider property rights enforcement in Russia. Keywords: institutional environment and internal labor market, transition to a market economy.
Keywords: institutional environment; internal labor market; transition to a market economy
JEL Codes: M5; P3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| transition from centrally planned to market economy (P21) | disruption of established career paths (J62) |
| transition to market economy (P23) | increase in external hiring of managers (M51) |
| transition to market economy (P23) | decrease in turnover of existing managers (M51) |
| increase in external hiring of managers (M51) | blocking of career paths (J62) |
| decrease in turnover of existing managers (M51) | blocking of career paths (J62) |
| weak enforcement of outsider property rights (P14) | top-heavy organizational structure (L22) |
| hiring of more experienced external managers (M51) | blocking of career paths (J62) |