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Employment in Informal Sector of Russia: Unemployment and Other Socio-Economic Factors

Author

Listed:
  • Sergey V. Kiselev

    (Lomonosov Moscow State University, Moscow, Russia)

  • Sanat K. Seitov

    (Lomonosov Moscow State University, Moscow, Russia)

  • Valery A. Samsonov

    (Lomonosov Moscow State University, Moscow, Russia)

  • Ilya V. Filimonov

    (Lomonosov Moscow State University, Moscow, Russia)

Abstract

In Russia in 2023, 18.3% of the employed were engaged in the informal sector. As in many other countries, the informal economy is important for the social and economic situation of the population. This paper aims to identify the impact of specific key factors, such as unemployment rate, wages, poverty level, number of formal sector actors, proportion of the rural population, on the proportion of the informally employed. The Two-Stage Least Squares Method estimates allow to conclude that wages and the number of formal sector actors had a negative effect on the proportion of the informally employed in Russia in 2009–2021, while the unemployment rate had a positive effect. The paper shows a lack of statistical significance of the impact of the proportion of the rural population on the proportion of the informally employed.

Suggested Citation

  • Sergey V. Kiselev & Sanat K. Seitov & Valery A. Samsonov & Ilya V. Filimonov, 2024. "Employment in Informal Sector of Russia: Unemployment and Other Socio-Economic Factors," Population and Economics, ARPHA Platform, vol. 8(3), pages 197-219, November.
    • Handle: RePEc:arh:jpopec:v:8:y:2024:i:3:p:197-219
    DOI: 10.3897/popecon.8.e114046
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    More about this item

    Keywords

    informal sector formal sector the employed labour demand labour supply poverty level unemployment rate number of formal sector actors wages proportion of rural population;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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