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Informal Employment and Its Impact on Population’s Income and Labor Productivity

Author

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  • E. S. Uzyakova

    (Institute of Economic Forecasting)

Abstract

— The paper is devoted to the analysis of the main reasons for the spread of informal employment in the labor market. The factors that have the greatest impact on it are highlighted. The influence of the level and dynamics of the number of people employed in the informal sector on the level and dynamics of the population’s income, labor productivity and economic growth is studied. Based on the results of the study, it is concluded that there is a relationship between low incomes in the economy that give rise to low quality jobs and low qualification requirements and the growth of hidden forms of employment that provide low incomes for the population. In particular, the labor productivity of the informally employed is 22–25% lower than that of the personnel of organizations, and their withdrawal from the “shadow” could help increase the total wage fund in 2020 by 6.8 billion rubles (including income tax).

Suggested Citation

  • E. S. Uzyakova, 2022. "Informal Employment and Its Impact on Population’s Income and Labor Productivity," Studies on Russian Economic Development, Springer, vol. 33(6), pages 716-722, December.
    • Handle: RePEc:spr:sorede:v:33:y:2022:i:6:d:10.1134_s1075700722060156
    DOI: 10.1134/S1075700722060156
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