IDEAS home Printed from https://ideas.repec.org/p/hig/wpaper/24-soc-2013.html
   My bibliography  Save this paper

Do informal workers make an underclass? An analysis of subjective social status

Author

Listed:
  • Anna Zudina

    (Higher School of Economics (Moscow, Russia))

Abstract

This article addresses the elaboration of a new approach to informal employment research based on analyzing subjective social status. In spite of numerous studies conducted over the past 40 years many questions still exist in the field of informal employment research. The heterogeneous nature of activities incorporated into the concept of “informality” defines the ambiguity of its impact on the economy and society. Thus, little is actually known about the socioeconomic position of informal workers and the nature of informal employment. Is informality a kind of stratifying mechanism embedded in the social structure that changes the position of the informally employed, or not? The so-called “direct” approach based on analyzing levels of income was considered to be an inappropriate framework and thus indicated that the consequences of informal employment need to be further analyzed together with indirect – subjective – measures. The present paper discusses methodological issues and presents results concerning the subjective social position of informally employed workers in contrast to formal workers, the unemployed, and the economically inactive population. The study was carried out on the basis of a large nationally representative panel: the Russia Longitudinal Monitoring Survey of the Higher School of Economics (RLMS-HSE) for 2000-2010. The existence of three-tier informal employment in Russia is revealed with self-employment being better off than formal employment and informal wage and salary work. No significant difference between informal wage and salary work and formal employment in terms of subjective social status is found. Thereby, one can suppose that the difference between types of employment is not embedded in the social structure at all. Taken as an indirect indicator of the quality formal employment in Russia, this could point to the great weakness of labor market institutions and the idle channels of social mobility of formal employment in Russia.

Suggested Citation

  • Anna Zudina, 2013. "Do informal workers make an underclass? An analysis of subjective social status," HSE Working papers WP BRP 24/SOC/2013, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:24/soc/2013
    as

    Download full text from publisher

    File URL: http://www.hse.ru/data/2013/09/05/1276978986/24SOC2013.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    2. Bosch, Mariano & Goni, Edwin & Maloney, William, 2007. "The determinants of rising informality in Brazil : Evidence from gross worker flows," Policy Research Working Paper Series 4375, The World Bank.
    3. Lehmann, Hartmut & Pignatti, Norberto, 2007. "Informal Employment Relationships and Labor Market Segmentation in Transition Economies: Evidence from Ukraine," IZA Discussion Papers 3269, Institute of Labor Economics (IZA).
    4. Carmen Pages & Lucia Madrigal, 2008. "Is Informality a Good Measure of Job Quality? Evidence from Job Satisfaction Data," Research Department Publications 4603, Inter-American Development Bank, Research Department.
    5. Sabine Bernabe, 2002. "Informal Employment in Countries in Transition: A conceptual framework," CASE Papers case56, Centre for Analysis of Social Exclusion, LSE.
    6. Sabine Bernabe, 2002. "Informal Employment in Countries in Transition: A conceptual framework," CASE Papers 056, Centre for Analysis of Social Exclusion, LSE.
    7. Carmen Pages & Lucia Madrigal, 2008. "Is Informality a Good Measure of Job Quality? Evidence from Job Satisfaction Data," Research Department Publications 4603, Inter-American Development Bank, Research Department.
    8. Singh-Manoux, Archana & Adler, Nancy E. & Marmot, Michael G., 2003. "Subjective social status: its determinants and its association with measures of ill-health in the Whitehall II study," Social Science & Medicine, Elsevier, vol. 56(6), pages 1321-1333, March.
    9. Clemens Tesch-Römer & Andreas Motel-Klingebiel & Martin Tomasik, 2008. "Gender Differences in Subjective Well-Being: Comparing Societies with Respect to Gender Equality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 85(2), pages 329-349, January.
    10. Gyorgy Molnar & Zsuzsa Kapitany, 2010. "Unreported Income, Education and Subjective Well-Being," CERS-IE WORKING PAPERS 1027, Institute of Economics, Centre for Economic and Regional Studies.
    11. Bischi, Gian Italo & Naimzada, Ahmad K. & Sbragia, Lucia, 2007. "Oligopoly games with Local Monopolistic Approximation," Journal of Economic Behavior & Organization, Elsevier, vol. 62(3), pages 371-388, March.
    12. Bosch, Mariano & Maloney, William, 2005. "Labor market dynamics in developing countries: comparative analysis using continuous time Markov processes," Policy Research Working Paper Series 3583, The World Bank.
    13. Bernabe, Sabine, 2002. "Informal employment in countries in transition: a conceptual framework," LSE Research Online Documents on Economics 6389, London School of Economics and Political Science, LSE Library.
    14. Lea Cassar, 2010. "Revisiting Informality: Evidence from Employment Characteristics and Job Satisfaction in Chile," OPHI Working Papers ophiwp041, Queen Elizabeth House, University of Oxford.
    15. Gimpelson, Vladimir & Kapeliushnikov, Rostislav, 2011. "Labor Market Adjustment: Is Russia Different?," IZA Discussion Papers 5588, Institute of Labor Economics (IZA).
    16. Goetz, Anne Marie & Gupta, Rina Sen, 1996. "Who takes the credit? Gender, power, and control over loan use in rural credit programs in Bangladesh," World Development, Elsevier, vol. 24(1), pages 45-63, January.
    17. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, May.
    18. Aistov, Andrey & Larin, Alexander & Leonova, Lyudmila, 2012. "Informal employment and happiness: Model with endogenous regressors," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 26(2), pages 17-36.
    19. Slonimczyk, Fabian, 2011. "The effect of taxation on informal employment: evidence from the Russian flat tax reform," MPRA Paper 35404, University Library of Munich, Germany.
    20. Noreen Goldman & Jennifer C. Cornman & Ming-Cheng Chang, 2005. "Measuring subjective social status: A case study of older Taiwanese," Working Papers 289, Princeton University, Woodrow Wilson School of Public and International Affairs, Office of Population Research..
    21. V. Gimpelson & A. Zudina., 2011. "Informal Workers in the Russian Economy: Who Are They and How Many?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 10.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tatiana Karabchuk & Natalia Soboleva, 2020. "Temporary Employment, Informal Work and Subjective Well-Being Across Europe: Does Labor Legislation Matter?," Journal of Happiness Studies, Springer, vol. 21(5), pages 1879-1901, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aguilar, Alexandra Cortés & García Muñoz, Teresa M. & Moro-Egido, Ana I., 2013. "Heterogeneous self-employment and satisfaction in Latin America," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 44-61.
    2. Paraskevi Koufopoulou & Colin C. Williams & Athanassios Vozikis & Kyriakos Souliotis, 2019. "Shadow Economy: Definitions, terms & theoretical considerations," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 9(5), pages 1-3.
    3. Aysit Tansel & Elif Öznur Acar, 2017. "Labor mobility across the formal/informal divide in Turkey: Evidence from individual-level data," Journal of Economic Studies, Emerald Group Publishing, vol. 44(4), pages 617-635, September.
    4. Fabián Slonimczyk & Vladimir Gimpelson, 2015. "Informality and mobility," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 299-341, April.
    5. Hartmut Lehmann & Anzelika Zaiceva, 2013. "Informal Employment in Russia: Definitions, Incidence, Determinants and Labour Market Segmentation," OECD Economics Department Working Papers 1098, OECD Publishing.
    6. Cortés Aguilar Alexandra & Teresa Garcia-Muñoz & Ana I. Moro Egido, 2013. "Heterogeneous Self-employment and Subjective Well-Being. Evidence from Latin America," ThE Papers 13/05, Department of Economic Theory and Economic History of the University of Granada..
    7. Gustavo Adolfo García, 2010. "Evolución de la informalidad laboral en Colombia: determinantes macro y efectos locales," Archivos de Economía 006449, Departamento Nacional de Planeación.
    8. Adem Yavuz Elveren, 2015. "The Impact of the Informal Employment on the Social Security Deficits in Turkey," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 1(1), pages 3-19, June.
    9. Lehmann, Hartmut & Zaiceva, Anzelika, 2013. "Re-defining Informal Employment and Measuring its Determinants: Evidence from Russia," IZA Discussion Papers 7844, Institute of Labor Economics (IZA).
    10. H. Lehmann & A. Zaiceva, 2013. "Informal Employment in Russia: Incidence, Determinants and Labor Market Segmentation," Working Papers wp903, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Nguyen, Duy Loi & Nguyen, Binh Giang & Tran, Thi Ha & Vo, Thi Minh Le & Nguyen, Dinh Ngan, 2014. "Employment, Earnings and Social Protection for Female Workers in Vietnam’s Informal Sector," MPRA Paper 61989, University Library of Munich, Germany.
    12. Florencia Lopez Boo & Lucia Madrigal & Carmen Pages, 2010. "Part-Time Work, Gender and Job Satisfaction: Evidence from a Developing Country," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1543-1571.
    13. Vega Núñez, Adriana Patricia, 2017. "Analysis of formal-informal transitions in the Ecuadorian labour market," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    14. Hamadi Matoussi & Faten Zoghlami, 2007. "Momentum in Emerging Markets: Investigation of Overconfidence and Cognitive BIAS Factors," Working Papers 717, Economic Research Forum, revised 04 Jan 2007.
    15. Hazans, Mihails, 2011. "Informal Workers across Europe: Evidence from 30 Countries," IZA Discussion Papers 5871, Institute of Labor Economics (IZA).
    16. Sahoo, Bimal & Neog, Bhaskar Jyoti, 2015. "Heterogeneity and participation in Informal employment among non-cultivator workers in India," MPRA Paper 68136, University Library of Munich, Germany.
    17. Italo Lopez Garcia, 2015. "Human Capital and Labor Informality in Chile A Life-Cycle Approach," Working Papers WR-1087, RAND Corporation.
    18. Slonimczyk, Fabian & Gimpelson, Vladimir, 2013. "Informality and Mobility: Evidence from Russian Panel Data," IZA Discussion Papers 7703, Institute of Labor Economics (IZA).
    19. François Gardes & Christophe Starzec, 2009. "Polish Households' Behavior in the Regular and Informal Economies," Revue économique, Presses de Sciences-Po, vol. 60(5), pages 1181-1210.
    20. Anita Staneva & G Arabsheibani, 2014. "Is there an informal employment wage premium? Evidence from Tajikistan," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.

    More about this item

    Keywords

    subjective social status; informal employment; self employment; segmented labor markets; panel data analysis; RLMS-HSE.;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hig:wpaper:24/soc/2013. 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: . General contact details of provider: https://edirc.repec.org/data/hsecoru.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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamil Abdulaev or Shamil Abdulaev (email available below). General contact details of provider: https://edirc.repec.org/data/hsecoru.html .

    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.