The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia

Abstract

Fixed-term contracts are becoming more used instead of the traditional model of open-ended employment. The authors examine the influence of institutional and organizational factors on the use of fixed-term contracts in Russia, with data from a survey covering 3 313 enterprises for the years 2009 to 2011. Probit and Tobit regressions are used to test several hypotheses derived from the literature. The results indicate that state-owned and unionised enterprises are more likely to use fixed-term contracts, and a high level of perceived dismissal protection for permanent workers is positively associated with the use of fixed-term contracts. Both the incidence and the intensity of fixed-term contracts are lower at enterprises with flexible wages. Among the organizational factors, the presence of workers with a tenure of 5-10 years and high job complexity are negatively related with the use fixed-term contracts.