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The dynamics of moonlightning: What is happening in the Russian informal economy?

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  • Guariglia, Alessandra
  • Kim, Byung-Yeon

Abstract

This paper uses rounds 5 to 8 of the Russian Longitudinal Monitoring Survey (RLMS) to analyse the dynamics of moonlighting of working-age population.We find that moonlighting is transitory, and is generally associated with career shifts.Those respondents who expressed a desire to switch jobs in the past are in fact more likely to moonlight in the present, and to effectively switch jobs in the future.The career shifts tend to be towards self-employed activities.These results imply that the Russian secondary labour market, as part of the informal economy, can provide long-term benefits for the economy as an effective incubator for setting up new self-employed businesses.

Suggested Citation

  • Guariglia, Alessandra & Kim, Byung-Yeon, 2001. "The dynamics of moonlightning: What is happening in the Russian informal economy?," BOFIT Discussion Papers 5/2001, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitp:bdp2001_005
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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Kim, Byung-Yeon, 1999. "Poverty and information economy participation in Romania," Economics Discussion Papers 10003, University of Essex, Department of Economics.
    3. Kolev, Alexandre, 1998. "Labour Supply in the Informal Economy in Russia during Transition," CEPR Discussion Papers 2024, C.E.P.R. Discussion Papers.
    4. Paul R. Gregory & Manouchehr Mokhtari & Wolfram Schrettl, 1999. "Do The Russians Really Save That Much? - Alternate Estimates From The Russian Longitudinal Monitoring Survey," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 694-703, November.
    5. Levenson, Alec R. & Maloney, William F., 1998. "The informal sector, firm dynamics, and institutional participation," Policy Research Working Paper Series 1988, The World Bank.
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