Evolution of Employment Protection Legislation in the USSR, CIS and Baltic States, 1985-2009
This paper presents and discusses new data on employment protection legislation (EPL) in the successor states of the former USSR – the CIS and Baltic states – over 25 years from 1985 to 2009. We use the OECD methodology (OECD EPL, version II) for assessing the strictness of national labor laws with respect to employers’ firing costs. In addition to the overall OECD EPL index, we present detailed statistics for 18(22) sub-indicators used for its computation. The new data allow us to make several important observations. In particular, the data do not support the widely held view that labor regulations in the former USSR with respect to firing costs were extremely rigid and were subsequently liberalized by the 15 successor states over the course of transition to a market economy. Rather, the dynamics of the EPL index in the region resembles an inverted U-shaped pattern with the peak of labor market rigidity occurring in the mid-1990s in the CIS countries and a decade later in the Baltic States. In terms of major sub-indicators, we observe a rather unusual pattern: gradual liberalization of permanent contracts on the background of increasing regulation of temporary contracts and collective dismissals. This is in sharp contrast with the OECD economies, where liberalization of temporary contracts has been the major trend in the recent decades. By now, the ex-USSR states as a group do not differ that much from the EU-15 and OECD countries in terms of the overall EPL index, although they differ considerably in terms of contributions to the overall EPL of its thee major components, namely, regulation of permanent contracts, temporary contracts, and collective dismissals. We also show that our EPL data are correlated with a number of variables characterizing economic development, progress in market-oriented reforms, and political regimes prevailing in the countries studied, which suggests potential of using the new dataset in further politico-economic research.
|Date of creation:||Dec 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ricardo Lagos, 2006.
"A model of TFP,"
345, Federal Reserve Bank of Minneapolis.
- Maja Micevska, 2004. "Unemployment and Labour Market Rigidities in Southeast Europe," wiiw Balkan Observatory Working Papers 49, The Vienna Institute for International Economic Studies, wiiw.
- Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lukiyanova, Anna, 2009.
"Employment Protection Legislation in Russia: Regional Enforcement and Labour Market Outcomes,"
IZA Discussion Papers
4484, Institute for the Study of Labor (IZA).
- Vladimir Gimpelson & Rostislav Kapelyushnikov & Anna Lukyanova, 2010. "Employment Protection Legislation in Russia: Regional Enforcement and Labor Market Outcomes," Comparative Economic Studies, Palgrave Macmillan, vol. 52(4), pages 611-636, December.
- V. Gimpelson & R. Kapeliushnikov & A. Lukiyanova, 2009. "Employment Protection Legislation in Russia: Regional Enforcement and Labour Market Outcomes," ESCIRRU Working Papers 11, DIW Berlin, German Institute for Economic Research.
- Smirnykh, Larisa, 2005. "Labor leasing: economic theory, EU and Russia experience," MPRA Paper 21568, University Library of Munich, Germany.
- James Heckman & Carmen Pages, 2003.
"Law and Employment: Lessons from Latin America and the Caribbean,"
NBER Working Papers
10129, National Bureau of Economic Research, Inc.
- James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, December.
- John T. Addison & Paulino Teixeira, 2003.
"The Economics of Employment Protection,"
Journal of Labor Research,
Transaction Publishers, vol. 24(1), pages 85-129, January.
- Per Skedinger, 2010. "Employment Protection Legislation," Books, Edward Elgar, number 13686.
- Mitra, Pradeep & Muravyev, Alexander & Schaffer, Mark E, 2008.
"Convergence in Institutions and Market Outcomes: Cross-Country and Time-Series Evidence from the BEEPS Surveys in Transition Economies,"
IZA Discussion Papers
3863, Institute for the Study of Labor (IZA).
- Pradeep Mitra & Alexander Muravyev & Mark E. Schaffer, 2008. "Convergence in institutions and market outcomes: Cross-country and time-series evidence from the BEEPS surveys in transition economies," CERT Discussion Papers 0809, Centre for Economic Reform and Transformation, Heriot Watt University.
- Pradeep Mitra & Alexander Muravyev & Mark E. Schaffer, 2008. "Convergence in Institutions and Market Outcomes: Cross-Country and Time-Series Evidence from the BEEPS Surveys in Transition Economies," Discussion Papers of DIW Berlin 847, DIW Berlin, German Institute for Economic Research.
- Eichhorst, Werner & Feil, Michael & Braun, Christoph, 2008.
"What Have We Learned? Assessing Labor Market Institutions and Indicators,"
IZA Discussion Papers
3470, Institute for the Study of Labor (IZA).
- Eichhorst, Werner & Feil, Michael & Braun, Christoph, 2008. "What have we learned? Assessing labor market institutions and indicators," IAB Discussion Paper 200822, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Gregory, Paul R & Collier, Irwin L, Jr, 1988. "Unemployment in the Soviet Union: Evidence from the Soviet Interview Project," American Economic Review, American Economic Association, vol. 78(4), pages 613-32, September.
- Michele Belot & Jan Boone & Jan Van Ours, 2007.
"Welfare-Improving Employment Protection,"
London School of Economics and Political Science, vol. 74(295), pages 381-396, 08.
- Michele Belot & Jan Boone & Jan van Ours, 2004. "Welfare Improving Employment Protection," DEGIT Conference Papers c009_004, DEGIT, Dynamics, Economic Growth, and International Trade.
- Belot, M.V.K. & Boone, J. & van Ours, J.C., 2007. "Welfare improving employment protection," Other publications TiSEM eee2f823-1384-4a2f-a4eb-7, Tilburg University, School of Economics and Management.
- Giuseppe BERTOLA & Tito BOERI & Sandrine CAZES, 2000. "Employment protection in industrialized countries: The case for new indicators," International Labour Review, International Labour Organization, vol. 139(1), pages 57-72, 03.
- Granick,David, 1987. "Job Rights in the Soviet Union," Cambridge Books, Cambridge University Press, number 9780521332958.
- Eamets, Raul & Masso, Jaan, 2004. "Labour Market Flexibility and Employment Protection Regulation in the Baltic States," IZA Discussion Papers 1147, Institute for the Study of Labor (IZA).
- Djankov, Simeon & Ramalho, Rita, 2008.
"Employment Laws in Developing Countries,"
CEPR Discussion Papers
7097, C.E.P.R. Discussion Papers.
- Hopenhayn, Hugo & Rogerson, Richard, 1993. "Job Turnover and Policy Evaluation: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 101(5), pages 915-38, October.
- Aziz Atamanov & Alexander Chubrik & Irina Denisova & Vladimir Dubrovskiy & Marina Kartseva & Irina Lukashova & Irina Makenbaeva & Magdalena Rokicka & Irina Sinitsina & Michael Tokmazishvili, 2008. "The Development Gap Between the CIS and EU," CASE Network Reports 0081, CASE-Center for Social and Economic Research.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5365. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.