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Economic and Social Consequences of Industrial Restructuring in Russia and Ukraine

Final Report Summary - ESCIRRU (Economic and Social Consequences of Industrial Restructuring in Russia and Ukraine)

The 'Economic and social consequences of industrial restructuring in Russia and Ukraine' (ESCIRRU) project addressed a broad spectrum of important issues connected to the economic and social consequences of restructuring and conversion in Russian and Ukrainian industry. In particular, the project pursued three main goals:
(1) to analyse how the restructuring and civil conversion processes affected the performance of the industrial sector in these emerging market economies,
(2) to analyse the socio-economic impact of these processes at the household level, and
(3) to increase the data foundations and the research potential of several partner institutions in Russia and the Ukraine.

The ESCIRRU project involved cooperation of eight partners in seven countries – and was divided into nine work packages.

- Work package 1 dealt with generating micro household and personnel data sets.

- Work package 2 investigated the impact of R&D efforts on Russian and Ukrainian economies.

-Work package 3 aimed at identifying and analysing the relationship between labour reallocation and productivity growth, focusing on the consequences of technological change, both innovation and adoption of new technologies, for job creation and destruction, and their relationship with productivity growth.

- Work package 4 analysed how restructuring enhances more flexible employment relations - with a special sub-module for gender issues; how restructuring affects the skill mix of the work force; and how labour institutions impact upon restructuring.

- Work package 5 started a new literature by beginning to analyse internal labour markets in transition economies and compensation policy by firms, focusing on the issues of restructuring and downsizing.

- Work package 6 focused on the incidence, the causes and consequences of worker displacement, including labour market segmentation and informal employment.

- Work package 7 studied the determinants of poverty in Ukraine and analysed the coping strategies adopted by different socio-economic groups of the population.

- Work package 8 focused on the social safety nets in Russia and Ukraine and its relationship with the labour market situation; it also aimed at designing an innovative approach to policy advice in the area of social security and its influence on labour market performance.

- Work package 9 dealt with the management of the project.

During the 48 months of the implementation of the project (1 February 2006 - 31 January 2010) an impressive amount of work has been accomplished in all work packages. While there were some setbacks, especially related to the length of time it took to collect the foreseen data, in the end the project generated unique new data sets and thus far 28 working papers of the ESCIRRU consortium that have been published at Since the generated data have not yet been analysed to the fullest, researchers of the consortium will produce several additional studies that will be made available on the indicated website in 2010 and 2011.