The Evolution of the Regulation of Labour in the USSR, the CIS and the Baltic States, 1985–2009

Abstract

This article is a first systematic study of employment protection legislation in the 15 successor states of the USSR over the last two and a half decades. The analysis is based on new and unique data assembled using OECD methodology. We find that the dynamics of employment protection in the region resemble an inverted U-shaped pattern with the peak of labour market rigidity occurring in the mid-1990s in CIS countries and a decade later in the Baltic states. By now, the former Soviet states as a group are similar to the EU-15 and OECD countries in terms of the overall employment protection legislation index, although they differ in terms of contributions to the overall employment protection legislation of its three major components, namely, regulation of permanent contracts, temporary contracts and collective dismissals.