Author: Svetlana B. Ginieva, Cand. Sc. (Econ.), Associate Prof. of Labour Economics & Personnel Management Dept; Ruslan A. Dolzhenko, Cand. Sc. (Econ.), Associate Prof. of Economics, Labour Sociology & Personnel Management Dept.

Abstract: The authors attempt to investigate labour relations from the position of the new institutional approach, particularly from the standpoint of transaction cost theory which currently is one of the key parts of modern economics. The article examines the content of labour relations and detects their specifics. The possibility of applying the transaction cost theory to labour relations is considered and directions for reducing the transaction costs of labour relations are indicated.

Keywords: labour relations; new institutional economics; transaction costs; transformation of labour functions.