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

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  • Gimpelson, Vladimir

    ()
    (CLMS, Higher School of Economics, Moscow)

  • Kapeliushnikov, Rostislav

    ()
    (CLMS, Higher School of Economics, Moscow)

  • Lukiyanova, Anna

    ()
    (Higher School of Economics, Moscow)

Abstract

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 analize 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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4484.

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Length: 37 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Comparative Economic Studies, 2010, 52 (4), 611-636
Handle: RePEc:iza:izadps:dp4484

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Keywords: regional labor markets; unemployment; employment protection regulations; enforcement; employment; Russia;

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Cited by:
  1. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, Elsevier, vol. 37(C), pages 82-99.
  2. Muravyev, Alexander, 2010. "Evolution of Employment Protection Legislation in the USSR, CIS and Baltic States, 1985-2009," IZA Discussion Papers 5365, Institute for the Study of Labor (IZA).
  3. Vladimir Gimpelson & Aleksey Oshchepkov, 2012. "Does more unemployment cause more fear of unemployment?," IZA Journal of Labor & Development, Springer, Springer, vol. 1(1), pages 1-26, December.
  4. Lehmann, Hartmut & Muravyev, Alexander & Razzolini, Tiziano & Zaiceva, Anzelika, 2010. "The Costs of Job Loss in Russia," IZA Discussion Papers 5415, Institute for the Study of Labor (IZA).
  5. Hartmut Lehmann & Alexander Muravyev & Tiziano Razzolini & Anzelika Zaiceva, 2011. "The Wage and Non-wage Costs of Displacement: Evidence from Russia," Center for Economic Research (RECent), University of Modena and Reggio E., Dept. of Economics 060, University of Modena and Reggio E., Dept. of Economics.
  6. Louis Jaeck & Sehjeong Kim, 2014. "The Impact of EMU Enlargement on Structural Reforms: A Political Economy Approach," International Advances in Economic Research, Springer, Springer, vol. 20(1), pages 73-86, February.
  7. Lehmann, Hartmut & Muravyev, Alexander & Razzolini, Tiziano & Zaiceva, Anzelika, 2013. "The wage and non-wage costs of displacement in boom times: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1184-1201.
  8. H. Lehmann & A. Muravyev, 2011. "Labor markets and labor market institutions in transition economies," Working Papers wp783, Dipartimento Scienze Economiche, Universita' di Bologna.

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