+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Financial Analytics: Science and Experience
 

A study on the nature of informal employment

Vol. 8, Iss. 6, FEBRUARY 2015

PDF  Article PDF Version

Available online: 7 February 2015

Subject Heading: ISSUES ON ECONOMICS

JEL Classification: 

Pages: 13-23

Vodop'yanova A.I. National Research University Higher School of Economics - Nizhny Novgorod, Nizhny Novgorod, Russian Federation
vodopianovaana@yandex.ru

Leonova L.A. National Research University Higher School of Economics - Nizhny Novgorod, Nizhny Novgorod, Russian Federation
lleonova@hse.ru

Importance The article considers the choice of informal employment. An informal employment is a complex and very diverse phenomenon that requires multifaceted consideration.
     Objectives The study analyses the factors related to characteristics of an individual's workplaces, which may determine the probability of selection of an informal employment sector.
     Methods The paper discusses an employment only in terms of the main place of work of an individual. As an informal employment within the framework of the study, we examine individuals related to salaried employees, but who are working without workbook, employment agreement or contract. An empirical model is assessed on the basis of a representative sample for Russia (the Russian monitoring of economic situation and public health, NRU of HSE, HSE-RLMS) for 2012. Probit model relationship of a binary choice of factors helps to evaluate the link of the considered factors with probability of selecting an informal sector of employment by individual. If the employer deprives the employee of the opportunity to enjoy the right to be entitled to a paid leave, it increases the likelihood that the individual will prefer to get employed in some informal sector. However, in general, there is no telling that the guarantees provided by officially concluded employment contract, have a critical impact on the employment status. The paper shows that the sectoral structure may determine an employment sector.
     Results A choice model of informal employment status may differ for men and women that attest to the fact about the differences in selectable trajectories in the labor market for women and men.
     Conclusions and Relevance To some extent, the results are conditioned by the specific nature of the problem, which relates to the fact that informally employed individuals are generally reluctant to disclose information that has an impact on the quality of available data. Our paper extends the knowledge about an informal employment sector of the Russian labor market.

Keywords: labor market, individual, informal employment, industry structure, probit model

References:

  1. Aistov A.V., Leonova L.A. Udovletvorennost' zhizn'yu i rabotoi, svyaz' s nezaregistrirovannoi zanyatost'yu [Life satisfaction and work satisfaction, and the connection with an unregistered employment]. Available at: Link. (In Russ.)
  2. Gimpel'son V.E. Zanyatost' v neformal'nom sektore v Rossii: ugroza ili blago? [Employment in the Russian informal sector: danger or benefit?]. Available at: Link. (In Russ.)
  3. Gimpel'son V.E., Zudina A.A. “Neformaly” v rossiiskoi ekonomike: skol'ko ikh i kto oni? [Informal persons in the Russian economy: how many and who are they?]. Voprosy Economiki, 2011, no. 10, pp. 53–76.
  4. Gimpel'son V.E., Zudina A.A. [The informal sector in Russia: dynamics, structure, and determinants]. Neformal'nyi sektor v Rossii: dinamika, struktura, determinant. XII Mezhdunarodnaya nauchnaya konferentsiya po problemam razvitiya ekonomiki i obshchestva. Kn. 1 [12th Int. Sci. Conf. on Economic and Social Development. Book 1]. Moscow, NRU HSE Publ., 2012, pp. 444–458.
  5. Gimpel'son V.E., Kapelyushnikov R.I. Nestandartnaya zanyatost' i rossiiskii rynok truda [Non-standard forms of employment and the Russian labor market]. Available at: Link. (In Russ.)
  6. Gimpel'son V.E., Kapelyushnikov R.I. Normal'no li byt' neformal'nym? [Is it normal to be informal?]. Available at: Link. (In Russ.)
  7. Zudina A.A. Neformal'naya zanyatost' i sub"ektivnyi sotsial'nyi status: primer Rossii [Non-standard employment and the subjective social status: a case study of Russia]. Available at: Link. (In Russ.)
  8. Kapelyushnikov R.I. Nestandartnye formy zanyatosti i bezrabotitsy v Rossii [Non-standard forms of employment and unemployment in Russia]. Available at: Link. (In Russ.)
  9. Luk'yanova A.L. Ispol'zovanie bezuslovnykh kvantil'nykh regressii pri otsenke vliyaniya neformal'nosti na neravenstvo [Using unconditional quantile regressions to assess an informality impact on inequality]. Available at: Link. (In Russ.)
  10. Luk'yanova A.L. Neravenstvo zarabotkov: faktor neformal'nosti (2000–2010) [Wage imparity: the informality factor (2000–2010)]. Available at: Link. (In Russ.)
  11. Oshchepkov A.Yu. Vliyanie minimal'noi zarabotnoi platy na neformal'nuyu zanyatost' [The impact of minimum wage on informal employment]. Available at: Link. (In Russ.)
  12. Harris J.R., Todaro M.P. Migration, Unemployment and Development: a Two-Sector Analysis. American Economic Review, 1970, no. 60, pp. 126–142.
  13. Heckman J.J., Sedlacek G. Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-Selection in the Labor Market. Journal of Political Economy, 1985, no. 93, pp. 1077–1125.
  14. Lehmann H., Zaiceva A. Re-defining informal employment and measuring its determinants: evidence from Russia. Available at: Link. (In Russ.)
  15. Magnac T. Segmented or Competitive Labor Markets. Econometrica, 1991, no. 59, pp. 165–187.
  16. Maloney W.F. Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico. The World Bank Economic Review, 1999, no. 13, pp. 275–302.
  17. Maloney W.F. Informality Revisited. World Development, 2004, no. 32, pp. 1159–1178.
  18. Perry G., Maloney W.F., Arias O., Fajnzylber P., Mason A., Saavedra-Chanduvi J. Informality: Exit and Exclusion. Washington DC, The World Bank, 2007.
  19. Slonimczyk F. Informality and Mobility: Evidence from Russian Panel Data. Available at: Link.
  20. Slonimczyk F. Informality as a Stepping Stone. Available at: Link.

View all articles of issue

 

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 17, Iss. 1
March 2024

Archive