Subject. This article explores the labor market in Russia and institutional mechanisms that contribute to the reduction of the shadow economy. Objectives. The article aims to identify factors affecting the scale and structure of informal employment at both the national and regional levels, and assess the role of sanctions in strengthening the shadow economy. Methods. For the study, we used a statistical analysis. Results. The article finds that in the Primorsky Krai, an increase in fixed capital investments leads to a decrease in the number of people employed in the informal sector, whereas the opposite trend is observed for Russia as a whole. Furthermore, in the Primorsky Krai, the growth in the number of registered entrepreneurs contributes to a reduction in the number of people employed in the informal sector of the economy. Conclusions. The regional authorities should take into account the characteristics of changes in important economic parameters when developing measures to support formal employment.
Keywords: informal employment, informal sector of economy, shadow economy, sanctions, regional development
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