ECONOMIC DEPRESSION IN REGIONAL LABOR MARKETS AND SUBSIDY DEPENDENCE OF REGIONS

The article conducted clustering of regional labor markets applying the integral index of labor market depression, proposed by the authors in order to Russian regions ranking. In accordance with obtained clusters, the subsidies allocated by the government to equalize regional budgets have been distributed. The main research hypothesis is whether the extent of regional labor markets depression interrelated with subsidies aimed to balance out the budget provision of Russian regions. A substantial aspect in reducing regional economic depression is the formation of self-development mechanisms. Government capital injection cannot be effective without creating an appropriate manufacturing and social infrastructure. The research revealed obvious interrelation between subsidy dependence and depression in Russia's regional markets. As part of the study, on the basis of seven indicators, Russian regions have been ranked into five clusters by the degree of economic depression as of 2016. The authors evaluated the subsidy dependence as regions (per capita) and clusters as well [1].