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Books by Grigory Yavlinsky
NIZHNI NOVGOROD PROLOGUE
Economics and Politics in Russia
The Center for Economic and Political Research (EPIcenter)
Nizhni Novgorod-Moscow, 1992
 
SECTION TWO
NIZHNI NOVGOROD - THE FIRST STEP
CHAPTER 4. EXPERIENCE AND PRACTICE

4.2. SOCIAL SPHERE

4.2.2. UNEMPLOYMENT MONITORING MECHANISM

 

Division of Enterprises into Classes

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Different industrial, financial and other features of enterprises are reflected in the specifics of staff redundancies. Here we should single out typical enterprise characteristics and divide them into initial classes for a final choice. The following characteristics reflect the influence of enterprises belonging to different classes on the labour market and their ability to adapt to new conditions:

1. Enterprises with sizable staffing levels (over 10,000). If they are closed down or if their staff are discharged too quickly, a crisis situation could emerge on the regional labour market. So everything should be kept under tight control.

2. Enterprises which a specific district is dependent on. An unfavourable situation at enterprises which are, in fact, monopolists on the labour market in specific districts, will affect the situation in the entire region. Consequently this group of enterprises should include the basic enterprises of the region's districts, even if they are not large and do not play a considerable role on a regional scale.

3. Enterprises which cannot adapt greatly to new conditions. The following factors may preclude the change of profile of such enterprises:

- uninterrupted production cycle or operation mode;

- dependence on external suppliers and clients;

- rigid production technology (conveyor);

- dependence on investment.

Transport enterprises, which ensure the normal functioning

of the region, should be singled out as a separate group. This is of particular importance for territories with a developed system of railways.

The initial division of enterprises into classes (groups) is very flexible and depends in each case on the district's specific features and its industrial structure. The criteria used to divide enterprises into groups must be typical and reflect the general problems of regional enterprises.

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