Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation
The impact of business regulations on firms could depend on how the regulations are enforced in practice. Exploiting variation in enforcement capacity across the Russian Federation's administrative regions, this paper examines whether the enfo...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/442851479132835481/Enforcement-capacity-and-the-impact-of-labor-regulation-evidence-from-the-Russian-Federation http://hdl.handle.net/10986/25690 |
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okr-10986-256902021-06-08T14:42:46Z Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation Gonzalez, Alvaro Sharma, Siddharth Subhash, Hari firms labor policies enforcement employment adjustment labor market The impact of business regulations on firms could depend on how the regulations are enforced in practice. Exploiting variation in enforcement capacity across the Russian Federation's administrative regions, this paper examines whether the enforcement of restrictive regulations on hiring and firing workers affects how firms adjust employment during industry upswings and downswings. The analysis finds that the extent to which firms adjust employment upward during industry upswings and downward during downswings is smaller in regions with stronger enforcement capacity (or stricter de facto employment protection). The effect of enforcement is sizable: for example, increasing enforcement capacity from the 25th to the 75th percentile dampens employment adjustment in a downswing by 34 percent. Thus, although restrictive regulation on hiring and firing reduces the ability of firms to adjust employment, the extent to which it does so depends on enforcement. 2016-12-06T21:49:15Z 2016-12-06T21:49:15Z 2016-11 Working Paper http://documents.worldbank.org/curated/en/442851479132835481/Enforcement-capacity-and-the-impact-of-labor-regulation-evidence-from-the-Russian-Federation http://hdl.handle.net/10986/25690 English en_US Policy Research Working Paper;No. 7888 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Russian Federation |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
firms labor policies enforcement employment adjustment labor market |
| spellingShingle |
firms labor policies enforcement employment adjustment labor market Gonzalez, Alvaro Sharma, Siddharth Subhash, Hari Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation |
| geographic_facet |
Europe and Central Asia Russian Federation |
| relation |
Policy Research Working Paper;No. 7888 |
| description |
The impact of business regulations on
firms could depend on how the regulations are enforced in
practice. Exploiting variation in enforcement capacity
across the Russian Federation's administrative regions,
this paper examines whether the enforcement of restrictive
regulations on hiring and firing workers affects how firms
adjust employment during industry upswings and downswings.
The analysis finds that the extent to which firms adjust
employment upward during industry upswings and downward
during downswings is smaller in regions with stronger
enforcement capacity (or stricter de facto employment
protection). The effect of enforcement is sizable: for
example, increasing enforcement capacity from the 25th to
the 75th percentile dampens employment adjustment in a
downswing by 34 percent. Thus, although restrictive
regulation on hiring and firing reduces the ability of firms
to adjust employment, the extent to which it does so depends
on enforcement. |
| format |
Working Paper |
| author |
Gonzalez, Alvaro Sharma, Siddharth Subhash, Hari |
| author_facet |
Gonzalez, Alvaro Sharma, Siddharth Subhash, Hari |
| author_sort |
Gonzalez, Alvaro |
| title |
Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation |
| title_short |
Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation |
| title_full |
Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation |
| title_fullStr |
Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation |
| title_full_unstemmed |
Enforcement Capacity and the Impact of Labor Regulation : Evidence from the Russian Federation |
| title_sort |
enforcement capacity and the impact of labor regulation : evidence from the russian federation |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/442851479132835481/Enforcement-capacity-and-the-impact-of-labor-regulation-evidence-from-the-Russian-Federation http://hdl.handle.net/10986/25690 |
| _version_ |
1764459900181676032 |