Document Type

Report

Publication Date

1981

Number

118

Abstract

In any economic system, but especially in centrally planned economies, there exists an important interaction between the political structure and the economic outcome. In a society like that of the Soviet Union, there are considerable differences in power among the various segments of society. These differences in power lead to the existence of economic classes, not unlike those in capitalist economies.^ The difference in economic outcome in such circumstances can be striking. During the 1920's the Soviet Union experienced substantial unemployment among the industrial labor force, with unemployment rates exceeding 10?^. At the same time, an industrial worker or employee who belonged to the Communist Party had between 1 and 4^. 2 chance of being unemployed. This paper constructs an explanation of this fact.

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