The purpose of this paper is to investigate labour market practices in a transition economy in relation to broader institutional configurations.
Through a review of relevant literature and the analysis of statistical data the paper reveals some specific factors influencing labour market practices in a transition economy.
The paper establishes a link between inefficient enforcement and the emergence of compensating institutional arrangements on the one side and the unusually broad implementation of flexible working time and flexible pay on the other as a crucial factor that made the stabilization of employment in Russia possible.
The paper reveals how a formal regulatory system, which on the face of it is similar to what is a norm in the majority of European countries, may coexist with a distinctive labour market model and explores issues of relevance to academics, researching in the field, policy‐makers, human resource managers, employers and employees.
