| By: |
V. Gimpelson;
R. Kapeliushnikov;
A. Lukiyanova |
| Abstract: |
The efficiency of the labour market critically depends on the design of its
institutions with employment protection legislation (EPL) playing a special
role here. However, 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 reveal and describe
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 |
| JEL: |
J21 J23 J52 K31 R23 |
| Date: |
2009 |
| URL: |
http://d.repec.org/n?u=RePEc:diw:diwesc:diwesc11&r=cis |