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

  • Vladimir Gimpelson

    (Center for Labor Market Studies, Higher School of Economics, 20, Myasnitskaya St, Moscow 101000, Russia)

  • Rostislav Kapelyushnikov

    (Institute of World Economy and International Relations, The Russian Academy of Sciences, Moscow, Russia)

  • Anna Lukyanova

    (Center for Labor Market Studies, Higher School of Economics, 20, Myasnitskaya St, Moscow 101000, Russia)

The efficiency of the labor market critically depends on the design of its institutions, including employment protection legislation. However, since formal laws can be observed to varying degrees, the actual enforcement regime shapes incentives and constraints. Most of the studies exploring the effects of employment protection on labor market performance implicitly assume that compliance is near to complete. However, if enforcement varies widely across regions/cities or segments of firms, then this variation may cause variation in performance. This paper, looking at Russia, explores whether cross-regional and inter-temporal variation in enforcement of employment protection laws is significant and is translated into regional labor market outcomes. The paper utilizes a unique data set based on State Labor Inspectorate data and Supreme Court statistics.

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Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 52 (2010)
Issue (Month): 4 (December)
Pages: 611-636

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Handle: RePEc:pal:compes:v:52:y:2010:i:4:p:611-636
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