The paper discusses the problem of informal employment in Russia, its structure and the factors contributing to the individual decisions making when choosing specific employment type. Informal employment is a highly diverse area comprising individuals with different profiles and motivations to prefer specific informal options over formal employment. Empirical findings using the 2003 NOBUS dataset confirm that defined groups of informally employed individuals are consistently different according to their main characteristics. This finding allows us to regard informal employment as a superior entrepreneurial sector or an inferior disadvantaged sector of the labour market depending on the specific segment.
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Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number
0606.
Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements P2 - Economic Systems - - Socialist Systems and Transition Economies
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