Informal employment: structure and risk determinants in Russia

Authors

DOI:

https://doi.org/10.21638/11701/spbu05.2016.402

Abstract

The article addresses the issue of risks to be in informal employment in Russia. To estimate them regression analysis was run on the Russian Longitudinal Monitoring Survey (RLMS-HSE) micro-data on individuals. Periods of 2009 and 2014 were taken for reference as periods when the economic crisis reached its peak in the labour market in Russia and a new financial and economic instability unfolding began respectively. The results obtained show the risks of being in informal employment to be distributed unevenly among the employed individuals. In addition, a systematic (stable) differences between the groups of informally and formally employed were found. It was also proved that an individual’s decision on informal employment is not always voluntary but on the contrary appears to be forced in many cases. Th e concluding remarks in the article address policy makers and highlight a need to take into account heterogeneity of the groups of informally employed when pursuing a policy. Refs. 18. Fig. 2. Tables 3.

Keywords:

informal employment, employment in informal sector, Russia, risks, crisis, RLMS-HSE, labour market, regression analysis

Downloads

Download data is not yet available.
 

Author Biography

Олеся Васильевна Вередюк, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

PhD in Economics, Associate Professor

References

Литература на русском языке

Аистов А. В., Ларин А. В., Леонова Л. А. Неформальная занятость и удовлетворенность жизнью: эмпирический анализ с учетом эндогенности // Прикладная эконометрика. 2012. № 2 (26). С. 17–36.

Гимпельсон В., Капелюшников Р. Жить «в тени» или умереть «на свету»: неформальность на российском рынке труда // Вопросы экономики. 2013. № 11. С. 65–88.

Стратегия национальной безопасности Российской Федерации. Утверждена Указом Президента Российской Федерации от 31 декабря 2015 г. № 683. URL: file:///C:/Users/no/Downloads/0001201512310038. pdf (дата обращения: 22.04.2016).


References in Latin Alphabet

Ben Salem M., Bensidoun I. The heterogeneity of informal employment and segmentation in the Turkish labour market // Journal of the Asia Pacific Economy. 2012. Vol. 17. P. 578–592.

Commander S., Isachenkova N., Rodionova Y. Informal employment dynamics in Ukraine: An analytical model of informality in transition economies // International Labour Review. 2013. Vol.
152. P. 445–467.

Fiess N. M., Fugazza M., Maloney W. F. Informal self-vol. employment and macroeconomic fluctuations // Journal of Development Economics. 2010. Vol. 91. P. 211–226.

Guenther I., Launov A. Informal employment in developing countries: Opportunity or last resort? // Journal of Development Economics. 2012. Vol. 97. P. 88–98.

Perry G., Maloney W., Arias O. et al. Informality: exit and exclusion / The International Bank for Reconstruction and Development (The World Bank). Washington, 2007. URL: https://openknowledge. worldbank.org/bitstream/handle/10986/6730/400080Informal101OFFICIAL0USE0ONLY1.pdf?sequence=1&isAllowed=y (accessed: 23.04.2016).

ILO (2007). Global Employment Trends for Women. Brief, March 2007. URL: http://www.ilo.org/empelm/pubs/WCMS_114287/lang--en/index.htm (accessed: 16.04.2016).

Khamis M. A note on informality in the labor market. IZA DP N 4676 2009. URL: http://ftp.iza.org/dp4676.pdf (accessed: 03.02.2016).

Kucera D., Roncolato L. Informal employment: Two contested policy issues // International Labour Review, 2008. Vol. 147. P. 321–348.

Loayza N. V., Rigolini J. Informal Employment: Safety Net or Growth Engine? // World Development, 2011. Vol. 39. P. 1503–1515.

Maloney W. F. Informality revisited // World Development. 2004. Vol. 32. P. 1159–1178.

Nureev R., Akhmadeev D. Formal and Informal Employment as “Twins Brothers” // Modern Russian Practice: Terra Economicus. 2015. Vol. 13. P. 16–33.

Pissarides C. A., Wadsworth J. “Unemployment Risks” // Understanding Unemployment / ed. by E. McLaughlin. London: Routledge, 1992. P. 58–79.

Schneider F., Montenegro C. E., Buehn A. New Estimates for the Shadow Economies all over the World // International Economic Journal. 2010. Vol. 24. P. 443–461.

Williams C. C. Out of the shadows: Classifying economies by the extent and nature of employment in the informal economy // International Labour Review. 2015. Vol. 154. P. 331–351.

Zuo H. Formal and Informal Employment in China: Probability of Employment and Determinants of Monthly Wages // Australian Economic Review. 2013. Vol. 46. P. 405–423.


Translation of references in Russian into English

Aistov A. V., Larin A. V., Leonova L. A. Neformal’naia zaniatost’ i udovletvorennost’ zhizn’iu: empiricheskii analiz s uchetom endogennosti [Informal employment and life satisfaction: An empirical analysis based on endogeneity]. Prikladnaia ekonometrika, 2012, no. 2 (26), pp. 17–36. (In Russian)

Gimpel’son V., Kapelyushnikov R. Zhit’ “v teni” ili umeret’ “na svetu”: neformal’nost’ na rossiiskom rynke truda [Live “in the shadow” or die “in the light”: the informality in the Russian labour market]. Voprosy Ehkonomiki, 2013, no. 11, pp. 65–88. (In Russian)

Strategiia natsional’noi bezopasnosti Rossiiskoi Federatsii. Utverzhdena Ukazom Prezidenta Rossiiskoi Federatsii ot 31 dekabria 2015 g. no. 683 [The National Security Strategy of the Russian Federation. Approved by Decree of the President of Russian Federation on December 31, 2015, no. 683]. Available at: file:///C:/Users/no/Downloads/0001201512310038.pdf (accessed: 22.04.2016). (In Russian)

Ben Salem M., Bensidoun I. The heterogeneity of informal employment and segmentation in the Turkish labour market. Journal of the Asia Pacific Economy, 2012, vol. 17, pp. 578–592.

Commander S., Isachenkova N., Rodionova Y. Informal employment dynamics in Ukraine: An analytical model of informality in transition economies. International Labour Review, 2013, vol. 152, pp. 445–467.

Fiess N. M., Fugazza M., Maloney W. F. Informal self-vol. employment and macroeconomic fluctuations. Journal of Development Economics, 2010, vol. 91, pp. 211–226.

Guenther I., Launov A. Informal employment in developing countries: Opportunity or last resort? Journal of Development Economics, 2012, vol. 97, pp. 88–98.

Perry G., Maloney W., Arias O. et al. Informality: exit and exclusion. The International Bank for Reconstruction and Development (The World Bank). Washington, 2007. Available at: https://openknowledge.worldbank.org/bitstream/handle/10986/6730/400080Informal101OFFICIAL0USE0ONLY1. pdf?sequence=1&isAllowed=y (accessed: 23.04.2016).

ILO (2007). Global Employment Trends for Women. Brief, March 2007. Available at: http://www.ilo.org/empelm/pubs/WCMS_114287/lang--en/index.htm (accessed: 16.04.2016).

Khamis M. A note on informality in the labor market. IZA DP N 4676 2009. Available at: http://ftp.iza.org/dp4676.pdf (accessed: 03.02.2016).

Kucera D., Roncolato L. Informal employment: Two contested policy issues. International Labour Review, 2008, vol. 147, pp. 321–348.

Loayza N. V., Rigolini J. Informal Employment: Safety Net or Growth Engine? World Development, 2011, vol. 39, pp. 1503–1515.

Maloney W. F. Informality revisited. World Development, 2004, vol. 32, pp. 1159–1178.

Nureev R., Akhmadeev D. Formal and Informal Employment as “Twins Brothers”. Modern Russian Practice: Terra Economicus, 2015, vol. 13, pp. 16–33.

Pissarides C. A., Wadsworth J. Unemployment Risks. Understanding Unemployment. Ed. by E. McLaughlin. London, Routledge, 1992, pp. 58–79.

Schneider F., Montenegro C. E., Buehn A. New Estimates for the Shadow Economies all over the World. International Economic Journal, 2010, vol. 24, pp. 443–461.

Williams C. C. Out of the shadows: Classifying economies by the extent and nature of employment in the informal economy. International Labour Review, 2015, vol. 154, pp. 331–351.

Zuo H. Formal and Informal Employment in China: Probability of Employment and Determinants of Monthly Wages. Australian Economic Review, 2013, vol. 46, pp. 405–423.

Published

2016-12-30

How to Cite

Вередюк, О. В. (2016). Informal employment: structure and risk determinants in Russia. St Petersburg University Journal of Economic Studies, (4), 033–048. https://doi.org/10.21638/11701/spbu05.2016.402

Issue

Section

Socio-economic Problems of Russia