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The efficiency of the labor market critically depends on the design of its institutions, including employment protection legislation. However, since formal laws can be observed to varying degrees, the actual enforcement regime shapes incentives and constraints. Most of the studies exploring the effects of employment protection on labor market performance implicitly assume that compliance is near to complete. However, if enforcement varies widely across regions/cities or segments of firms, then this variation may cause variation in performance. This work, looking at Russia, explores whether cross-regional and inter-temporal variation in enforcement of employment protection laws is significant and is translated into regional work utilizes a unique data set based on State Labor Inspectorate data and Supreme Court statistics.

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