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Abstract:

The global financial crisis interrupted a protracted period of strong economic growth in the Russian Federation. Despite a large decline in output, job losses and hikes in unemployment remained rather modest, and much of the labour market adjustment took place through reduced working hours and, in particular, real wages. Notwithstanding the recent recovery, the Russian labour market remains characterised by significant structural imbalances resulting in widespread segmentation and large earnings inequalities. To improve the balance between labour market flexibility and the protection of workers, the Russian Federation needs to reinforce its labour market institutions. This can be done by strengthening labour law enforcement, promoting workers representation and collective bargaining, the labour inspectorate, enhancing the effectiveness of active labour market programmes and by removing the possibility to use civil contracts for employment purposes as these provide little or no employment protection.

Document Type: Review Article

Publication date: 2011-12-01

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