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

37 Pages Posted: 20 Oct 2009

See all articles by Vladimir Gimpelson

Vladimir Gimpelson

National Research University Higher School of Economics (Moscow); IZA Institute of Labor Economics

Rostislav Kapeliushnikov

National Research University Higher School of Economics; Primakov National Research Institute of World Economy and International Relations

Anna Lukiyanova

National Research University 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.

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

JEL Classification: J21, J23, J52, K31, R23

Suggested Citation

Gimpelson, Vladimir and Kapeliushnikov, Rostislav and Lukiyanova, Anna, Employment Protection Legislation in Russia: Regional Enforcement and Labour Market Outcomes. IZA Discussion Paper No. 4484, Available at SSRN: https://ssrn.com/abstract=1490506 or http://dx.doi.org/10.2139/ssrn.1490506

Vladimir Gimpelson (Contact Author)

National Research University Higher School of Economics (Moscow) ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Rostislav Kapeliushnikov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Primakov National Research Institute of World Economy and International Relations ( email )

Profsouznaya St., 23
Moscow GSP-7, 117997
Russia

Anna Lukiyanova

National Research University Higher School of Economics (Moscow) ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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