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The Shifting Russian Informal Employment Structure: Trends and the Role of Institutions

Year: 2026
Type: article
Abstract: This study focuses on the topic of informal employment in the Russian economy. This study aims to evaluate the extent, organization, and changes in Russia's informal labor market, and to create evidence-based methods for its management. This study's relevance stems from the fact that informal employment is widespread and harms state budgets, extra-budgetary funds, and the social security system. The scientific novelty contribution of this work is the dual application of balance sheet and Rosstat production methods for assessing informal employment. This enabled authors to spot differences in industry structure and uncover "informality within formal employment". Key research methods involved balance analysis (finding the difference between average yearly employment and average headcount), a comparative industry structure analysis, and statistical methods for dynamic series analysis. The findings indicated a consistent increase in the equilibrium between the two official data sets, as the proportion of hired workers in this balance reached 37.9%. The analysis revealed major disparities across industries, with construction, trade, and services being most affected; and the spread of the estimated indicator in high-tech sectors was discovered. A conclusion was reached regarding the structural shift of informal employment towards hybrid models and its growth in contemporary economic sectors. Furthermore, the emergence of informal work in formal industries holds considerable practical importance, demanding the creation of varied regulatory approaches that acknowledge industry-specific characteristics.
Language: English
Open Access status: diamond
OpenAlex ID: W7165059622
FWCI: 4.269
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Related to: 10