Statistical Analysis on the Overemployment in the Electricity and Fuels Sectors in Russia

Abstract

The decrease in total output has been accompanied by the increase in employment in the electricity, oil and gas sectors in Russia during the process of transition. The paper examines the cause of this phenomenon, using official labor statistics and the author's estimates. It is shown that the cost structure, high profitability, and extensive wage arrears of these three sectors make them able to increase employment under the condition of the decrease in total output.