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Region: Economics and Sociology

2024 year, number 1

ANALYSIS OF STRUCTURAL FOUNDATIONS OF INTERREGIONAL LABOR PRODUCTIVITY DIFFERENTIATION

L.V. Melnikova
Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences, Novosibirsk, Russia
Keywords: interregional differentiation, convergence, labor productivity, structural differences, structural analysis, shift-share

Abstract

The article studies the interregional differentiation in labor productivity (LP) levels underlying the differences in regional economic dynamics. It evaluates the significance of sectoral structure and its modifications in shaping interregional differences in LP levels using the shift-share structural analysis method. The analysis of changes in labor productivity is based on the GVA per employed person in industries according to the All-Russian Classifier of Types of Economic Activities, encompasses data from the Russian Federation’s regions, and spans the period from 2011 to 2021. The findings reveal a trend toward the convergence of regional LP levels. This convergence is chiefly driven by regional shifts arising from intra-industry LP variances contingent on production location, while sectoral shifts indicating inter-industry LP disparities play a comparatively minor role. Contrarywise, the divergence in regional LP levels is predominantly attributed to localization shifts resulting from regional specialization in industries reflective of their comparative advantages. Notably, these localization shifts mostly occur in the Asian regions of Russia.