OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

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Non-standard contracts, flexibility and employment adjustment

Empirical evidence from Russian establishment data

This paper examines the use of two forms of non-standard work contracts in Russia with data from an enterprise survey for the years 2009 to 2011. Non-standard work contracts are less costly and more flexible for employers. Internal adjustment in form of wage cuts or unpaid leave is not covered by the Labour Code and earlier practices to impose such measures are less tolerated. Therefore more firms use non-standard work contracts for external flexibility. Statistical analysis shows that companies using non-standard work contracts have similar unobserved characteristics and consider fixed-term contracts and agency work as complements. The main concern for policy is the growing danger of duality following the asymmetric distribution of adjustment costs for workers.


Keywords: employment level, labour turnover, labour contracts, Russia
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