From the 2008 to the 2014 Crisis : Response of the Labor Market of Russia's Largest Cities

The model of shift share analysis was improved to show that the foundation of economy's transition to industrially innovational type of development is created at the local level in case of developing countries. Analysis of structural shifts in 28 large cities in 2008-2014 showed that the perspective of industrially innovational development is yet delusive – production sector and the sphere of human capital development are reduced. There's outflow of employees into the service sphere and financial activities. That is an alarming tendency. The 2014 crisis might become rather long for Russia's economy, and perspectives for transition to innovational type of development until 2020 remain delusive. In order to ensure transition to innovational type of development, it's necessary to build corresponding structure of economy – primarily, in large cities of the country. They are the first to react to policy changes. Local authorities perform the most important role in this process. Calculations showed that municipalities are most sensitive to influence of crisis and measures taken by the government