IDEAS home Printed from https://ideas.repec.org/p/zbw/tuweco/092016.html
   My bibliography  Save this paper

The importance of institutional and organizational characteristics for the use of fixed-term and agency work contracts in Russia

Author

Listed:
  • Smirnych, L. I.
  • Wörgötter, Andreas

Abstract

Non-renewable fixed-term and agency work contracts are becoming more used instead of the traditional Russian model of open-ended employment. The authors examine the influence of institutional and organizational factors on the use of two forms of non-standard work contracts in Russia with data from a Survey covering 3313 enterprises for the years 2009 to 2011. Probit and Tobit regressions are used to test several hypotheses about the use of non-standard work contracts derived from the literature. The results indicate that state-owned and unionized enterprises are more likely to use fixed-term contracts; and a high level of perceived dismissal protection for permanent workers is positively associated with fixed-term contracts use. The incidence and intensity of fixed-term and agency work contracts are lower at enterprises with flexible wages. A significant impact of organizational factors is confirmed only for fixed-term contracts. Enterprises use less fixed-term contracts, if they have workers with tenure from 5 to 10 years and high job complexity.

Suggested Citation

  • Smirnych, L. I. & Wörgötter, Andreas, 2016. "The importance of institutional and organizational characteristics for the use of fixed-term and agency work contracts in Russia," ECON WPS - Working Papers in Economic Theory and Policy 09/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    • Handle: RePEc:zbw:tuweco:092016
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/147449/1/872149862.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lawrence M. Kahn, 2007. "The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence," Economic Journal, Royal Economic Society, vol. 117(521), pages 333-356, June.
    2. repec:clu:wpaper:0708-12 is not listed on IDEAS
    3. Susan N. Houseman, 2001. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
    4. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "Job reallocation, employment fluctuations and unemployment," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 18, pages 1171-1228, Elsevier.
    5. Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 699-726.
    6. Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-819, July.
    7. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
    8. Maurice Kugler & Eric Verhoogen, 2012. "Prices, Plant Size, and Product Quality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 307-339.
    9. Spermann, Alexander, 2011. "The New Role of Temporary Agency Work in Germany," IZA Discussion Papers 6180, Institute of Labor Economics (IZA).
    10. Shaw, Kathryn & Lazear, Edward P., 2008. "Tenure and output," Labour Economics, Elsevier, vol. 15(4), pages 704-723, August.
    11. John Earle & Saul Estrin, 2003. "Privatization, Competition, and Budget Constraints: Disciplining Enterprises in Russia," Economic Change and Restructuring, Springer, vol. 36(1), pages 1-22, March.
    12. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    13. Xiangmin Liu, 2015. "How Institutional and Organizational Characteristics Explain the Growth of Contingent Work in China," ILR Review, Cornell University, ILR School, vol. 68(2), pages 372-397, March.
    14. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 489-530.
    15. Jahn Elke J., 2010. "Reassessing the Pay Gap for Temps in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 208-233, April.
    16. John S. Earle & Klara Sabirianova Peter, 2004. "Contract Violations, Neighborhood Effects, And Wage Arrears In Russia," William Davidson Institute Working Papers Series 2004-708, William Davidson Institute at the University of Michigan.
    17. Kahn, Lawrence M., 2010. "Employment protection reforms, employment and the incidence of temporary jobs in Europe: 1996-2001," Labour Economics, Elsevier, vol. 17(1), pages 1-15, January.
    18. Elke J. Jahn & Jan Bentzen, 2012. "What Drives the Demand for Temporary Agency Workers?," LABOUR, CEIS, vol. 26(3), pages 341-355, September.
    19. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
    20. Karen A. Shire & Hannelore Mottweiler & Annika Schönauer & Mireia Valverde, 2009. "Temporary Work in Coordinated Market Economies: Evidence from Front-Line Service Workplaces," ILR Review, Cornell University, ILR School, vol. 62(4), pages 602-617, July.
    21. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70(6), pages 538-538.
    22. Christian Pfeifer, 2005. "Flexibility, Dual Labour Markets, and Temporary Employment. Empirical Evidence from German Establishment Data," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 16(3), pages 404-422.
    23. Yeaple, Stephen Ross, 2005. "A simple model of firm heterogeneity, international trade, and wages," Journal of International Economics, Elsevier, vol. 65(1), pages 1-20, January.
    24. Arne L. Kalleberg, 2001. "Organizing Flexibility: The Flexible Firm in a New Century," British Journal of Industrial Relations, London School of Economics, vol. 39(4), pages 479-504, December.
    25. Hagen, Tobias, 2001. "Do temporary workers receive risk-premiums? Assessing the wage effects of fixed-term contracts in West-Germany by matching estimators compared with parametric apporaches," ZEW Discussion Papers 01-71, ZEW - Leibniz Centre for European Economic Research.
    26. Kaiser, Ulrich & Pfeiffer, Friedhelm, 2000. "Collective wage agreements and the adjustment of workers and hours in German service firms," ZEW Discussion Papers 00-33, ZEW - Leibniz Centre for European Economic Research.
    27. Danielle D. Van Jaarsveld & Hyunji Kwon & Ann C. Frost, 2009. "The Effects of Institutional and Organizational Characteristics on Work Force Flexibility: Evidence from Call Centers in Three Liberal Market Economies," ILR Review, Cornell University, ILR School, vol. 62(4), pages 573-601, July.
    28. Felix Hüfner & Andreas Wörgötter & Caroline Klein, 2014. "The German Labor Market in the Great Recession: Lessons for Other Countries," Palgrave Macmillan Books, in: Joe Colombano & Aniket Shah (ed.), Learning from the World, chapter 6, pages 69-88, Palgrave Macmillan.
    29. Karen M. Olsen & Arne L. Kalleberg, 2004. "Non-Standard Work in Two Different Employment Regimes," Work, Employment & Society, British Sociological Association, vol. 18(2), pages 321-348, June.
    30. Kyle J. Mayer & Jack A. Nickerson, 2005. "Antecedents and Performance Implications of Contracting for Knowledge Workers: Evidence from Information Technology Services," Organization Science, INFORMS, vol. 16(3), pages 225-242, June.
    31. Siebert, Horst, 1997. "Labor market rigidities and unemployment in Europe," Kiel Working Papers 787, Kiel Institute for the World Economy (IfW Kiel).
    32. Renato Faccini, 2014. "Reassessing Labour Market Reforms: Temporary Contracts as a Screening Device," Economic Journal, Royal Economic Society, vol. 124(575), pages 167-200, March.
    33. Hagen, Tobias, 2003. "Do Fixed-Term Contracts Increase the Long-Term Employment Opportunities of the Unemployed?," ZEW Discussion Papers 03-49, ZEW - Leibniz Centre for European Economic Research.
    34. Horst Siebert, 1997. "Labor Market Rigidities: At the Root of Unemployment in Europe," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 37-54, Summer.
    35. Christopher J. S. Gentle, 1996. "Europe in 2010," Palgrave Macmillan Books, in: After Liberalisation, chapter 7, pages 121-132, Palgrave Macmillan.
    36. Мальцева И. О., 2009. "Трудовая Мобильность И Стабильность: Насколько Высока Отдача От Специфического Человеческого Капитала В России?," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 13(2), pages 243-278.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    2. Hipp, Lena & Anderson, Christopher J., 2015. "Laziness or liberation? Labor market policies and workers' attitudes toward employment flexibility," LSE Research Online Documents on Economics 101872, London School of Economics and Political Science, LSE Library.
    3. Gayle Allard & Peter H. Lindert, 2006. "Euro-Productivity and Euro-Jobs since the 1960s: Which Institutions Really Mattered?," NBER Working Papers 12460, National Bureau of Economic Research, Inc.
    4. Smirnykh, Larisa & Wörgötter, Andreas, 2013. "Why Do Russian Firms Use Fixed-Term and Agency Work Contracts?," IZA Policy Papers 54, Institute of Labor Economics (IZA).
    5. Gayle Allard & Peter H. Lindert, 2006. "Euro-Productivity and Euro-Jobs since the 1960s: Which Institutions Really Mattered?," NBER Working Papers 12460, National Bureau of Economic Research, Inc.
    6. Brüll, Eduard, 2019. "Restrictions of fixed term employment contracts: Evidence from a German reform," ZEW Discussion Papers 19-034, ZEW - Leibniz Centre for European Economic Research.
    7. Amable, Bruno & Gatti, Donatella, 2001. "The Impact of Product Market Competition on Employment and Wages," IZA Discussion Papers 276, Institute of Labor Economics (IZA).
    8. Peter Pisár & Ján Huňady & Erika Ľapinová, 2018. "Work Flexibility in Developed Countries: Economic Context and Policy Implications," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(6), pages 684-703.
    9. Berton, Fabio & Migheli Matteo, 2015. "Estimating the marginal rate of substitution between wage and employment protection," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201529, University of Turin.
    10. Arnaud Dupuy & Daniel Fernandez-Kranz, 2011. "International differences in the family gap in pay: the role of labour market institutions," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 413-438.
    11. Emiliano Brancaccio & Fabiana De Cristofaro & Raffaele Giammetti, 2020. "No Consensus In The Imf-Oecd 'Consensus': A Meta-Analysis On The Employment Impact Of Labour Deregulations," Working Papers 445, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    12. Paloma Lopez-Garcia, 2002. "Labour Market Performance and Start-Up Costs: OECD Evidence," CEP Discussion Papers dp0565, Centre for Economic Performance, LSE.
    13. Irene Brambilla & Nicolas Depetris Chauvin & Guido Porto, 2015. "Wage and Employment Gains from Exports: Evidence from Developing Countries," Working Papers 2015-28, CEPII research center.
    14. RUSSO, Giuseppe & VEREDAS, David, 2000. "Institutional rigidities and employment rigidity in the Italian large industrial firms," LIDAM Discussion Papers CORE 2000048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Holger Görg & Dennis Görlich, 2015. "Offshoring, wages and job security of temporary workers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(3), pages 533-554, August.
    16. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2012. "The Empirics of Firm Heterogeneity and International Trade," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 283-313, July.
    17. Robert Dixon & G. C. Lim & Jan C. van Ours, 2017. "Revisiting the Okun relationship," Applied Economics, Taylor & Francis Journals, vol. 49(28), pages 2749-2765, June.
    18. Inmaculada Garcia & Colin Green & Maria Navarro Paniagua, 2012. "New Estimates of the Effect of Temporary Employment on Absenteeism," Working Papers 24151321, Lancaster University Management School, Economics Department.
    19. Felix Reichling, 2005. "Retraining the Unemployed in a Matching Model with Turbulence," Macroeconomics 0506012, University Library of Munich, Germany.
    20. A. Arrighetti & E. Bartoloni & F. Landini & C. Pollio, 2019. "Exuberant proclivity towards non-standard employment: evidence from linked employer-employee data," Economics Department Working Papers 2019-EP02, Department of Economics, Parma University (Italy).

    More about this item

    Keywords

    fixed-term contracts; agency work; non-standard employment; labor flexibility; Russia;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuweco:092016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/imtuwat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.