Re-defining Informal Employment and Measuring its Determinants: Evidence from Russia
AbstractInformal activities impact countries' economic development and overall growth. However, studying informal employment is not easy and it is crucial to provide a valid definition of it. This paper contributes to the recent discussion of the measures of informality by taking advantage of a rich dataset on Russia over the period 2003 - 2011, that is before and after the economic downturn, together with a special supplement on informality that allows to construct different measures of informal employment and to analyze its determinants. We demonstrate that the incidence of informal employment varies across the different definitions. However, the determinants of informal employment are roughly stable across the different measures as long as we exclude firm size as a criterion. We also show that risk-averse individuals, as expected, are less likely to select themselves into informal employment.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7844.
Length: 43 pages
Date of creation: Dec 2013
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Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-24 (All new papers)
- NEP-CIS-2014-01-24 (Confederation of Independent States)
- NEP-CWA-2014-01-24 (Central & Western Asia)
- NEP-IUE-2014-01-24 (Informal & Underground Economics)
- NEP-LAB-2014-01-24 (Labour Economics)
- NEP-LMA-2014-01-24 (Labor Markets - Supply, Demand, & Wages)
- NEP-TRA-2014-01-24 (Transition Economics)
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