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The participation of Russian households in the informal economy: Evidence from the VTsIOM data

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  • Byung–Yeon Kim

Abstract

This study presents the size and structure of secondary employment in Russia, analyses the determinants of Russian informal secondary employment, and discusses differences between job qualifications in a main job and those in a secondary job. We estimate that 27 percent of Russia’s GDP was produced in the informal economy during 1997–98 and informal secondary employment amounts to about 20 percent of value added produced in the informal economy. We found that the probability of holding an informal secondary job as opposed to a formal one is positively associated with higher wage rates and lower education. However, there is little evidence that low income is correlated with holding an informal secondary job. We also found evidence that an informal secondary job requires lower job qualifications as compared to a formal one. Again, low income is not significant in determining differences between job qualifications in a main job and those in a secondary job. JEL classification: J22, J24, O17, P20.

Suggested Citation

  • Byung–Yeon Kim, 2002. "The participation of Russian households in the informal economy: Evidence from the VTsIOM data," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(3), pages 689-717, November.
    • Handle: RePEc:bla:etrans:v:10:y:2002:i:3:p:689-717
    DOI: 10.1111/1468-0351.t01-1-00130
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    Citations

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    Cited by:

    1. Irina Merkuryeva, 2006. "Informal Employment in Russia: Combining Disadvantages and Opportunities," CERT Discussion Papers 0606, Centre for Economic Reform and Transformation, Heriot Watt University.
    2. Byung‐Yeon Kim & Youngho Kang, 2009. "The informal economy and the growth of small enterprises in Russia1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(2), pages 351-376, April.
    3. Alessandra Guariglia & Byung‐Yeon Kim, 2006. "The dynamics of moonlighting in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(1), pages 1-45, March.
    4. Byung-Yeon Kim, 2011. "The Unofficial Economy in Russia," KIER Working Papers 797, Kyoto University, Institute of Economic Research.
    5. Colin C. Williams & John Round, 2008. "Evaluating the Penetration of Capitalism in Postsocialist Moscow," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(2), pages 359-379, April.
    6. Byung‐Yeon Kim, 2005. "Poverty and informal economy participation," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 163-185, January.
    7. Colin C. Williams & Sara Nadin & Peter Rodgers & John Round & Jan Windebank, 2011. "Mapping the Social Organization of Labour in Moscow: Beyond the Formal/informal Labour Dualism," Sociological Research Online, , vol. 16(1), pages 43-53, February.
    8. Colin C. Williams & Peter Rodgers, 2012. "Evaluating the persistence of subsistence work in contemporary economies," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(9), pages 721-737, July.
    9. Yuriy Timofeyev, 2013. "The Effects of the Informal Sector on Income of the Poor in Russia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(3), pages 855-866, May.
    10. Colin C. Williams & John Round, 2007. "Beyond Negative Depictions of Informal Employment: Some Lessons from Moscow," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2321-2338, November.
    11. Kim, Byung-Yeon, 2010. "Informal Economy Activities and Entrepreneurship in Russia," Proceedings of the German Development Economics Conference, Hannover 2010 55, Verein für Socialpolitik, Research Committee Development Economics.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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