@TechReport{iza:izadps:dp6034, author={Commander, Simon and Nikoloski, Zlatko and Plekhanov, Alexander}, title={Employment Concentration and Resource Allocation: One-Company Towns in Russia}, year={2011}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={6034}, url={https://www.iza.org/publications/dp6034}, abstract={The paper looks at the effects of employment concentration on resource allocation with a particular focus on one-company towns in Russia defined as towns where a single company accounts for a significant share of total employment of the locality. Empirical analysis of firms' production functions indicates that companies located in one-company towns are characterised by lower marginal product of labour, higher marginal product of capital and lower overall productivity pointing towards significant labour hoarding. One-company town enterprises are also found to be financially more vulnerable. The paper argues that the dominance of natural resources in the Russian economy and employment concentration is closely linked.}, keywords={employment concentration;one-company towns;labour productivity;Russia}, }