The Effect of COVID-19 on the Labor Market Structure: Evidence from Russia

Student: Mitrokhina Ekaterina

Supervisor: Vitalijs Jascisens

Faculty: International College of Economics and Finance

Educational Programme: Financial Economics (Master)

Year of Graduation: 2021

Using data on registered unemployment, this paper evaluates a heterogeneity effect of COVID-19 shock with respect to the introduced lockdown measures, regional economy structure, and the trust in a governor. Depending on the sources of variation we demonstrate that the COVID-19 adjusts the structure of the labor market and has a different effect in various regions. In regions with an industrial structure of the economy, we see an increase in unemployment comparing with unemployed people from regions with a diversified structure. The pass system that was introduced by some regional governments is associated with lower registered unemployment. Finally, we show that trust in politicians on average allows the governor to implement policies that people will respond to.

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