IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2013i20p52-83.html
   My bibliography  Save this article

Informality in the Russian Labor Market: What Do Alternative Definitions Tell Us?

Author

Listed:
  • Kapeliushnikov, I.

    (Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow, Russia
    Centre for Labour Market Studies, National Research University Higher School of Economics, Moscow, Russia)

Abstract

According to the existing literature, informality rates for Russia vary in a wide range from slightly more than 5 to nearly 30%. The question arises: what are the causes and consequences of such a huge variation? Using RMLS data for 2009 the author investigates the degree of congruence between several alternative definitions of the informal employment in the context of the Russian labor market. Analysis shows that depending on empirical definitions informality rates considerably differ - from 11 to 24%. With different approaches not only the scale of the informal employment but also its socio-demographic profile radically changes. Furthermore, the econometric analysis reveals that the conditional impact of particular factors on the risk of informality varies considerably from one definition to another. This suggests that the existing estimates of the informal employment for Russia could hardly be regarded as methodologically robust.

Suggested Citation

  • Kapeliushnikov, I., 2013. "Informality in the Russian Labor Market: What Do Alternative Definitions Tell Us?," Journal of the New Economic Association, New Economic Association, vol. 20(4), pages 52-83.
  • Handle: RePEc:nea:journl:y:2013:i:20:p:52-83
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2013-20-52-83r.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gong, Xiaodong & Van Soest, Arthur & Villagomez, Elizabeth, 2004. "Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 1-36, October.
    2. Mead, Donald C. & Morrisson, Christian, 1996. "The informal sector elephant," World Development, Elsevier, vol. 24(10), pages 1611-1619, October.
    3. Henley, Andrew & Arabsheibani, Reza & Carneiro, Francisco G., 2006. "On Defining and Measuring the Informal Sector," IZA Discussion Papers 2473, Institute for the Study of Labor (IZA).
    4. Marcouiller, Douglas & Ruiz de Castilla, Veronica & Woodruff, Christopher, 1997. "Formal Measures of the Informal-Sector Wage Gap in Mexico, El Salvador, and Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 367-392, January.
    5. Gasparini Leonardo & Leonardo Tornaroli, 2009. "Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
    6. repec:ilo:ilowps:375000 is not listed on IDEAS
    7. Jaime Saavedra & Alberto Chong, 1999. "Structural reform, institutions and earnings: Evidence from the formal and informal sectors in urban Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 95-116.
    8. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications, The World Bank, number 6730, January.
    9. Hussmanns, Ralf., 2004. "Measuring the informal economy : from employment in the formal sector to informal employment," ILO Working Papers 993750003402676, International Labour Organization.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    labor market; informal sector; informal employment; Russia;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2013:i:20:p:52-83. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Tcharykov). General contact details of provider: http://edirc.repec.org/data/nearuea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.