Employment Protection Legislation in Russia: Regional Enforcement and Labour Market Outcomes

Vladimir Gimpelson, Rostislav Kapeliushnikov () and A. Lukiyanova
Authors registered in the RePEc Author Service: Anna Lukyanova

No 11, ESCIRRU Working Papers from DIW Berlin, German Institute for Economic Research

Abstract: The efficiency of the labour market critically depends on the design of its institutions with employment protection legislation (EPL) playing a special role here. However, since formal laws can be observed or ignored to varying degrees, the actual enforcement regime shapes incentives and constraints. Most of the studies exploring EPL effects on labour market performance implicitly assume that EPL compliance is near to complete and therefore all firms bear full adjustment costs incurred by the regulations. This seems to be a very strong assumption for any country but it sounds especially strong and hardly plausible for developing and transition economies. But if compliance and enforcement varies widely across regions/cities or segments of firms, then this variation is likely to cause variation in performance. This paper looks at Russia in particular. The main idea of this paper is to reveal and describe cross-regional and inter-temporal variation in EPL enforcement and to explore empirically whether it is translated into regional labour market outcomes. The paper employs unique data set based on the State Labour Inspectorate data and the Supreme court statistics on labour disputes.

Keywords: employment protection regulations; enforcement; employment; unemployment; regional labor markets (search for similar items in EconPapers)
JEL-codes: J21 J23 J52 K31 R23 (search for similar items in EconPapers)
Pages: 43 p.
Date: 2009
New Economics Papers: this item is included in nep-cis, nep-lab and nep-reg
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Employment Protection Legislation in Russia: Regional Enforcement and Labor Market Outcomes (2010)
Working Paper: Employment Protection Legislation in Russia: Regional Enforcement and Labour Market Outcomes (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwesc:diwesc11

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