Published in «Russian Journal of Labor Economics»3 / 2019
DOI: 10.18334/et.6.3.40891

The reasons for the weak effect of measures to reduce informal employment in terms of resource scarcity

Gunchenkova Aleksandra Sergeevna, Dostoevsky Omsk State University, Russia

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Highlights:
Various business support measures are being taken in Russian Federation to remove employment from the informal sector, however they are ineffective.
The facilities of increasing formal employment at the expense of the informal employment rest not only on objective circumstances, but also on the ability of individuals to assess these objective circumstances.
An individual (employee, self-employed, etc.) requires a large proportion of the available resources to monitor, evaluate and maintain the formal "rules of the game".
In order to solve the problem of informal employment, it is necessary to differentiate public policy measures in this regard, taking into account the availability of resources to the economic agent.
Ways to overcome the subjective reasons for the choice of informal employment by citizens lies in the field of behavioral Economics and implies the implementation of the state policy of "default choice".

Abstract:
In recent years, the International Labour Organization has expressed concern about the wide spread of informal employment around the world. In Russia, the problem of employment in the shadow sector is no less relevant and little studied. The application of the measures used by the state to formalize employment does not bring significant results, which makes us think about the reasons for the weak effect. The article presents the fundamental basis of the informal sector, describes the objective reasons for its current expansion and subjective factors that prevent formalization. It is proposed to consider the reasons for the weak effect of the implementation of measures to reduce informal employment, taking into account access to resources in organizations of different sizes.

Keywords:

informal employment, lack of resources, measures to reduce informal employment

JEL-Classification: D61, D83, J46, J68

Citation:
Gunchenkova A.S. (2019). The reasons for the weak effect of measures to reduce informal employment in terms of resource scarcity [Vzaimosvyazy urovnya neformalnoy zanyatosti i dostupa k resursam]. Russian Journal of Labor Economics, 6(3). (in Russian). – doi: 10.18334/et.6.3.40891.


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