November 2017

IZA DP No. 11126: Age and Education in the Russian Labour Market Equation

published as 'Age and education in the Russian labour market' in: T. Becker, S. Oxenstierna (eds.),The Russian Economy under Putin (Routledge Contemporary Russia and Eastern Europe Series), Routledge, 2018

This paper deals with age and educational dimensions of the labour supply in Russia and explores two time periods: from 2000 to 2015 (retrospective), and the next 15 years (prospective). For our analysis we exploit the micro-census (2015) data and all LFS waves covering the retrospective period. Combining demographic projections with expected employment rates and data on educational achievement we forecast the employment composition up to 2030. If recent past changes in both age and education have contributed to economic growth, their effect is likely to be negative in the next 15 years. These two dimensions are directly associated with such challenges as ageing and over-education of the labour force. Russia is not unique here, but it is more exposed to both dimensions than are many other countries due to its demographic and educational developments. The paper concludes with several tentative policies that could ease, although not cure, the problem.