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Informal (shadow) employment and its consequences

Shadow employment(or informal employment), sometimes also called “left work” in Russia, is a type of employment in the informal economy, when the fact of establishing labor relations between the employee and the employer is hidden from official authorities. Usually these relationships are hidden at the initiative of the employer or employee in order not to pay taxes or circumvent this or that law. In this case, the payment is usually made in cash, often the employer is not interested in the past of the employee and his documents.

Informal employment can be defined as "any kind of employment relationship based on an oral agreement". It is no secret that some employers, in order to save money and evade tax and other obligatory payments, when accepting an employee, refuse to register an employment relationship, that is, they offer him to work "underhand". And many workers prefer to work without official registration.

Why do people go into informal employment? There are several main reasons for this: low legal culture of the population, inability to get a contractual job (great competition, small offer, unwillingness of the employer to pay taxes); flexible work schedule; additional income; example of friends, unwillingness to work under the supervision of superiors or in a team; employment without a high level of education, qualifications. Young people are prone to informal employment, because it affects the lack of education, the inability to get a job without work experience, as well as the difficulty of combining study and other activities. Many older people, unable to find employment, turn to farming for sale, which increases their well-being, but this activity cannot be classified as registered employment.

Workers in the informal sector, at first glance, receive a financial advantage in the form of keeping unpaid taxes, but at the same time they face the infringement of their social and labor rights.

By agreeing to work informally, the employee risks:

• receive lower wages;
• not receive wages in case of any conflict with the employer;
• do not receive vacation pay or do not go on vacation at all;
• not receive sick leave pay;
• completely lose the social guarantees provided for by the employment contract;
• receive a refusal to investigate an accident at work;
• not receive payment upon dismissal;
• receive a refusal to issue the loan he needs;
• be denied a visa.

In addition, pension accruals will not be made from his salary. A person will feel the unpleasantness of this situation more acutely, closer to old age.

Employees should exercise vigilance and caution when entering into an employment relationship, financial side which is not as "transparent" as it should be.

With informal employment, the state, and as a result, society, loses part of the taxes that employees and their employers could pay if there was an official registration of labor relations. This leads, for example, to insufficient funding public sector, limits the possibility of increasing wages in the public sector.

There are various methods to reduce informal employment. These are inspections of control and supervisory bodies, and information and explanatory work with employers and employees, and the involvement of social partners, as well as the conclusion of collective agreements in organizations.

Many potential employees may simply be unaware of the costs they will face working informally, including not being able to get paid. sick leave or parental leave. This information is needed for all categories of the working population, but especially for young people who still have the opportunity to make a difference.

Thus, “Informal employment means low official earnings, violation of the labor rights of workers in the field of the regime and working conditions, and the extreme difficulty of protecting these rights. This is a low pension in the future and the inability to take a loan in the present. Such workers are deprived of the opportunity to receive full benefits for temporary disability, unemployment, child care and termination benefits in the event of redundancy.

The Turukhansk District Administration, by resolution No. 1251 dated November 18, 2016, approved an action plan to reduce informal employment for 2017, within the framework of which work is being carried out aimed at organizing and conducting an explanatory campaign for economically active population and employers in order to form a negative attitude towards informal employment.

According to p.p. 4.1, 4.2 p. IV of the Plan, the administration of the Turukhansk district informs:

For detecting an illegal payment wages provided for liability in accordance with article 122 tax code RF; administrative responsibility in accordance with Article 15.11 of the Code of Administrative Offenses of the Russian Federation, in extreme cases - criminal liability, in accordance with the Criminal Code of the Russian Federation.

The reason for the verification may be the appeal of a citizen or organization.

On issues of violation of labor rights (arrears in payment of wages, work without concluding an employment contract, payment of wages below the minimum wage established by the Regional Agreement "On the minimum wage in the Krasnoyarsk Territory", etc.), the Turukhansky District Administration has a helpline: 8- 39190-4-45-80, by which you can report the facts of payment of wages "in an envelope", informal employment. The following options for receiving messages are also organized: in the form of personal presence through the general department of the administration of Turukhansk district, through post offices, e-mail [email protected].

M.N. Mukhanova

RURAL EMPLOYMENT IN RUSSIA

IN THE INFORMAL SECTOR

Mukhanova Maria Nikolaevna - candidate of sociological sciences,

senior Researcher Institute of Sociology RAS.

Russian economy has entered a period of falling oil prices, and financial sanctions are forcing the state to minimize the risks emanating from markets that cannot be controlled. Now the growth of the economy, according to experts, is largely determined by the development Agriculture. This, in turn, depends on the quality human capital, states labor resources. Economic stagnation in 2013, dramatic socioeconomic changes in the second half of 2014, and the crisis in 2015 brought to the fore the problem of informal employment in agriculture and the agro-industrial complex as a whole. Therefore, it is important to trace the state of the labor market in the countryside, assess the scale and characteristics of the informal sector in the agro-industrial complex, and the prospects for the development of rural employment.

Workers in the informal sector are characterized by a focus on survival rather than capital accumulation; their labor rights are not protected, usually there is no contract with the employer. The transition to the market, in particular in agricultural sector, was accompanied by an increase in unemployment, poverty, and the emergence of various forms of self-employment of the rural population.

In Russia, those employed in the informal sector are defined by statistics as “persons who, during the surveyed period, were employed in at least one of the production units of the informal sector, regardless of the status of employment and whether this work was their main or additional job. As a criterion for determining units of the informal sector, the criterion of the absence state registration as legal entity» . In our survey, the measurement of employment in the informal sector is structured according to the following features:

tel, family business; 2) in farm enterprises (FH), the heads of which are registered as individual entrepreneurs without formation of a legal entity; 3) an entrepreneur without forming a legal entity (PBOYuL); 4) for hire from individual entrepreneurs; 5) on an individual basis; 6) working in their own household for the production of products.

Thus, the structures of the informal sector in the labor market are distinguished by the following features: inclusion in the market system of social and labor relations as an employer, employee and self-employed; receipt of income from the employer or consumer of services; jobs in the informal sector are established on the basis of an oral agreement that violates labor and social guarantees.

The concentration and level of employment of the rural population in industrial sectors serve as the basis for changes in the social structure of the village. Within it, there are significant differences between social groups in terms of education, terms of employment, professional employment, and income. Changes in the number of employees by type economic activity cause structural mobility - movement in the branches of the agro-industrial complex.

The transformation of the social structure and the labor market determines the inconstancy, the non-linear nature of not only employment, but also the daily life of peasants, sociocultural and value changes in their consciousness and lifestyle. According to Z. Bauman, “the uncertainty of our days is a powerful individualizing force ... it divides, instead of uniting. In conditions when employment becomes short-term, loses clear prospects, there is little chance for rooting and strengthening mutual loyalty and solidarity. Thus, the process of individualization breaks old ties within rural local communities, gives rise to new models of relations based on the collapse of the old collective identity.

The analysis of the employment of the rural population in the informal sector is based on Rosstat data. "Comprehensive Observation of Living Conditions of the Population" - the first survey of households and their members, conducted by Rosstat in 2011 and 2014. in all subjects of the Russian Federation. In 2011, 5,763 villagers aged 16 and over living in 2,835 rural households were interviewed using the interview method. In 2014, the rural sample was increased and amounted to 34,596 villagers living in 17,820 rural households in 85 subjects in nine federal districts, including the Crimean Federal District1. As an auxiliary

1. http://www.gks.ru/free_doc/new_site/KOUZ14/survey0/index.html - Arrays with survey results were posted by Rosstat on the website at the end of January 2016. Data for secondary analysis were processed by the author using SPSS.

The material for the analysis was the survey of households "Sampling observation of incomes of the population and participation in social programs", conducted by Rosstat in 2012, 2014. in 83 regions of the country in all administrative-federal districts. In 2012, the survey involved 5800 individuals aged 16 and over living in 2754 rural households. In 2014, the rural sample increased and amounted to 32,753 respondents aged 16 and over living in 13,248 households2. The quarterly Employment Population Survey 2005-2014 was also used.3

Socio-territorial inequality in Russian society is characterized by the fact that resources vital to society are distributed unevenly, their flows are concentrated in capitals and large cities. Russian rural settlements, for the most part, are not a place for the passage of financial and production flows. Industrial localization and isolation of rural settlements often lead to economic backwardness. Even when in rural settlement there is a large transnational or Russian enterprise, for example, an agricultural holding, this does not mean that the villagers will be in demand in this labor market. One manifestation of inequality is that in different parts of space there are different chances of the transformation of resources into capital.

Sectoral employment of workers

informal sector

Sectoral employment of workers in the informal sector is heterogeneous. In agriculture, the informal sector is represented by self-employed villagers whose main place of work is in their personal subsidiary plots (PSP) and peasant farming. farming(KFH).

Households engaged in the production of agricultural products on the basis of household plots are divided into two types: those producing products for their own final consumption and those for sale in whole or in part. The latter are the main type of people employed in the informal sector. They are counted by the statistical authorities as economically employed, although most of them do not have the status of an individual entrepreneur. As incomes rise and the composition of the population changes, their number decreases. According to

2. http://www.gks.ru/free_doc/new_site/USP/survey0/index.ktml - Rosstat put the arrays with the results of this survey on the site in February 2016. The data were processed by the author using the SPSS statistical program.

3. http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1140097038766

Rosstat, in 2014, compared with 2009, the number of commercial household plots decreased by 14%, consumer - by 21%. On average, commercial household plots make up about 20-22%.

In the post-Soviet period, this form of management has become a condition for survival and the main type of employment for the majority of the rural population. In the social structure of modern rural Russia in private household plots, the self-employed make up a large social group, more than a third of all employed people.

Although specific gravity Personal subsidiary plots are declining, however, in 2014 they accounted for 41.4% of agricultural production. In farms, the level of production was 10%. Thus, in aggregate, the sector of small business forms provides more than 50% of the gross agricultural output.

Another group employed in the informal sector is farms, the number of which is more than 216 thousand units.

However, the number of farms in the country is decreasing every year. At the beginning of 2014, compared to 2012, their number decreased by more than a quarter (27.6%) . It is possible that only the strongest of them will remain in the field of agricultural production. Experts note that the money allocated for agriculture, including for import substitution, goes to banks and large corporations; 20 agricultural oligarchs receive 95% of state support. The remaining 5% is somehow divided between more than 52 thousand agricultural organizations (former collective farms and state farms), 27 thousand micro-enterprises, as well as peasant farms. In this situation, it is especially difficult for farmers, so they cannot withstand competition and are forced to leave, mainly for household plots. Grants given by the government to farmers are so insignificant that it is hardly possible to develop a farm on them.

Another major issue for farmers is land. It is privately owned by the owners, who in difficult times bought up land shares for next to nothing from the peasants and rent them out to farmers. They can at any time refuse to lease the land already cultivated by the farmer, or sell it. For this reason, in Krasnodar Territory, for example, in one of the rural municipalities, dozens of abandoned farms can be observed. The severity of the issue was shown by the August events - the actions of Kuban farmers who tried to draw Moscow's attention to the facts of land seizure and corruption. Meanwhile, the Minister of Agriculture A. Tkachev did not see any violations in the solution of the land issue in the Kuban: "All documents confirm the legitimacy of the transfer of farmers' lands to agricultural holdings."

Thus, the weakness of the legislative norms governing land use and the solution of other problems (for example, per hectare subsidies) serve as the main brake on the development of farms.

The number of villagers engaged in non-agricultural activities is growing every year. The share of the rural population employed in the informal sector in 2010 decreased compared to 2008, but since 2012 it has been increasing (Table 1). Half (48%) of those employed in the informal sector work in agriculture, making up the majority, although since 2006 they have decreased by almost 20%. On the other hand, the employment of villagers is growing in non-agricultural sectors - trade, repair of motor vehicles and motorcycles, household products, construction, transport and communications.

Table 1

EMPLOYED RURAL POPULATION IN THE INFORMAL SECTOR BY TYPES OF ECONOMIC ACTIVITIES (INDUSTRY) 2006-2014, thousand people, %

Industries 2006 2008 2010 2012 2013 2014

Total, thousand people in the informal sector 5475 5478 4793 5345 5376 5412

Total, % 100.0 100.0 100.0 100.0 100.0 100.0

Agriculture, hunting, forestry 67.6 56.5 57.3 53.3 50.8 48.6

farming and fishing

Manufacturing industries 5.8 7.2 7.0 7.3 7.6 7.3

Construction 4.2 8.2 7.7 8.3 9.0 9.9

Wholesale and retail trade;

repair of motor vehicles and motor vehicles, household items 16.6 19.5 18.4 20.5 20.5 20.9

Transport and communications 2.4 4.1 4.3 4.8 5.4 5.9

Education, healthcare 0.4 0.4 0.7 0.7 0.9 0.9

Other industries 3.0 4.1 4.6 5.0 5.6 6.5

Source Rosstat: Population survey on employment issues, 2006-2014. Other industries: mining; production and distribution of electricity, gas and water; hotels and restaurants; financial activities, etc.

Comparison of rural employment by industry in the formal and informal sectors in 2012 and 2014 (Table 2) shows that in agriculture, a high level of employment is demonstrated by workers in the informal sector compared to the formal sector. True, the number of the former has significantly decreased compared to the previous period, and only one in five works in agriculture. The reason may have been their outflow to the formal sector or migration.

table 2

INDUSTRY EMPLOYMENT OF THE RURAL POPULATION BY AIC SECTORS, in %

Branches of the agro-industrial complex Type of sector of employment in the main job

Employed in the formal sector Employed in the informal sector

2012 2014 2012 2014

Agriculture, hunting and forestry, fishing 15.1 14.5 33.0 22.0

Production, including energy 15.7 17.0 8.8 11.8

Construction 6.1 5.8 7.1 16.1

Trade, repair, hotels and restaurants, transport and communications 17.3 14.2 41.8 40.4

Financial activities, operations with real estate 5,4 6,1 5,8 4,9

State administration and military security 11.2 9.8 - 0.2

Education 15.6 18.2 - 0.4

Health and social services 9.7 10.6 - 0.6

Provision of other communal, social and personal services 3.6 3.8 2.4 2.8

Other activities 0.2 - 1.0 0.8

Total respondents 2509 100.0 10,015 100.0 294 100.0 2576 100.0

Source of Rosstat: "Selected observation of income of the population and participation in social programs", 2012, 2014.

In the non-agricultural sectors of the informal sector, the share of those employed in the service sector, trade, transport, and communications is three times higher than the share of those employed in the formal sector. The proportion of construction workers more than doubled compared to the previous period. In general, the share of the rural population employed in agriculture in the total number of employed villagers is declining every year. In 2014 they were 20.9% compared to 24.2% in 2009 .

If we consider those employed in the informal sector by federal districts, then traditionally this figure was significantly higher in the North Caucasus, Southern, Volga, Siberian, North-Western districts. In 2014, compared to 2012, their numbers decreased markedly, especially in the Southern Federal District, Northwestern Federal District, and Siberian Federal District. On the other hand, informal employment in the North Caucasus Federal District increased by 10.7%. A high level of employment of the rural population in the informal sector is demonstrated by the Crimean Federal District (40%).

The share of the rural population in the Russian Federation averages 27%, including in the North Caucasus Federal District (50%), the Southern Federal District (37.1), the Volga Federal District (22.3) and the Crimean Federal District (58%), which consist of regions with a traditionally developed rural economy and strong agricultural production potential.

The development of the informal sector is affected by regional unemployment. Its highest level is in the North Caucasus Federal District - 14.3%, Siberian Federal District - 10.3%, Far Eastern Federal District - 11.0%, Southern Federal District - 8.2%. The unemployment rate is still very high in the Republic of Ingushetia (46.3%), Chechnya (26.1%), Tyva (29.7%). In all likelihood, the actual number of unemployed is higher, since the policy and conditions for registration in the Employment Centers is to encourage the unemployed themselves to seek work on their own by assigning them minimum allowance.

Obviously, the relatively high level of employment of the rural population in the informal sector, especially among young people, can be explained by the transfer of social costs from the formal sector to the informal one.

Employment of the rural population

in informal sector structures

The distribution of working villagers in the structure of the informal sector (Table 3) shows that in 2014, about 70% of all employed were employees. Compared to 2011, the number of people employed at the enterprises of an individual entrepreneur and a family enterprise has significantly decreased. Within this group, the majority of the employed (77.5%) work as employees for wages and rewards. In farming, the share of employees was 75%, in the field of entrepreneurial activity without forming a legal entity - 28%.

Table 3

EMPLOYMENT OF THE RURAL POPULATION IN THE MAIN JOB IN THE STRUCTURES OF THE INFORMAL SECTOR, in %

Employed in informal sector structures 2011 2014

At the enterprise of an individual entrepreneur, family enterprise 40.3 30.0

Farming 9.2 8.2

In the field of entrepreneurial activity without forming a legal entity 5.9 6.0

Employed by individual entrepreneurs 30.4 39.0

On an individual basis 10.3 13.0

In own household for the production of goods, products 3.9 3.8

Total number of respondents 727 4285

Total 100.0 100.0

Rosstat source: "Comprehensive monitoring of living conditions ...", 2011, 2014.

Comparison of employment indicators by terms of employment shows that in the formal sector almost every worker is employed permanently (92.0%), while in the informal sector - only every second (48.6%). More than a third of workers in the informal sector (36%) worked on the basis of a verbal agreement without drawing up a civil law contract, and only a few in the formal sector. If we consider the conditions of employment by professional structure, then the majority in the informal sector works on the basis of an oral agreement, without registration, and therefore without any social guarantees - skilled workers - 41.5%, unskilled workers - 38, service sector workers - 16% .

The majority of workers in the informal sector (58.3-70.5%) work outside their specialty. In the formal sector, there are half of such workers (48%). Farmers (91.5%) or self-employed workers (86.5%) did not receive special training for their current job. Only half of those working in the informal sector have the skills or qualifications to do more complex work.

Changes in education in the 1990s led to a sharp decline in the number of highly qualified students in vocational schools. Among workers in the informal sector, only one in ten (10.7%) has a higher education, which is 2 times lower than in the formal sector (24.0%). Every third of them has an initial professional education, every fourth - secondary general or secondary vocational education. The relatively low level of education of workers in the informal sector does not provide them with sufficiently safe working conditions. Therefore, most of them characterize their work as heavy and moderate (76%), more than half (55%) - as dangerous, associated with nervous tension and exposure to harmful production factors. A quarter of workers in the informal sector are looking for a suitable job with a good salary for 35 hours. in Week. At the same time, they understand that it is difficult to find such a job.

Intersectoral comparison of the age indicators of the employed does not reveal significant differences. The share of young people (16-29 years old) in the informal sector is higher (19.4%) than in the formal sector (15.3%). Every second employed person in both sectors belongs to the middle age category (30-49 years). On the other hand, there are more villagers of the older age group (50 years and over) in the formal sector (35.8%) than in the informal sector (29.2%).

According to the gender composition, more than half of those employed in the informal sector are men (64%), the share of women is about a third (36%). In the formal sector, they are 48% and 52%, respectively. The high proportion of men employed in the informal sector is due to the fact that most of

including skilled and unskilled workers. Women mostly work in budget organizations- in education, healthcare, this explains the high level of their employment in the formal sector.

Data analysis shows that the majority of employed villagers in the informal and formal sectors live in settlements with a population of 1001-5000 people (42.5%), a quarter - with more than 5 thousand people (25.0), a third of workers live in villages with a population of 2,011,000 people (32%). The existing rural labor market with low wages and a high level of rural unemployment - 12.1% (in the Russian Federation - 5.8%), limited territorial resources determines the pendulum movement. Therefore, more than a third of workers in the informal and formal sectors have a job not at their place of residence, but with a temporary stay in another locality. Regularly, almost daily, use municipal or commercial transport in an equal proportion (42% each) of workers in both sectors. The majority of those employed in the informal (84%) and formal (74%) sectors commute to work by their own car.

Socio-professional structure of the employed

in the informal sector

To analyze the intragroup occupational distribution, we used All-Russian classifier classes OK 010-2014 (MSKZ-08), developed by the Ministry of Labor and Social Protection of the Russian Federation.

In 2014, the modal occupational groups in the informal sector were skilled (23.1%) and unskilled workers (23.7%). If we consider the intra-group distribution of skilled workers, then most of them are mainly representatives of construction specialties (9.7%) - masons, roofers, tilers, plasterers, painters, welders, electricians, carpenters, as well as employees of various industrial enterprises - seamstresses, bakers and etc.

Skilled agricultural workers (6.0%) are represented mainly by farmers of various profiles, field growers, vegetable growers and commodity producers of personal subsidiary plots.

Unskilled workers are mainly employed as laborers at construction sites (3.0%) and agricultural work (6.0%) - they are loaders, pickers of vegetables, fruits, as well as representatives of simple professions (house and hotel servants, cleaners, etc.). ).

The next major professional group in the informal sector is trade and service workers. In the group distribution, a significant share is represented by workers in small retail trade - street vendors, sellers of stalls and markets (11.7%), shop assistants

(3.2), workers Catering(2.8) and consumer services (2.2%).

The professional group of plant and machine operators is mainly represented by vehicle drivers and mobile equipment operators. In this group, the main share is made up of drivers of cars, taxis (9.2%), drivers of trucks (3.5%), drivers of tractors, combines, harvesters (2.5%).

Professionals with higher education in the informal sector make up 6.0%, their share has increased significantly compared to 2011. Accountants, economists, engineers, mechanics, agronomists, veterinarians, doctors of various profiles, teachers, lawyers, programmers make up a significant part in this group , priests.

The structure of specialists with secondary specialized education (5.0%) is dominated by accountants, bank tellers, electricians, mechanics, operators of various equipment, foremen (foremen) of industrial enterprises, freight forwarders, medical workers, pharmacists, educators, sports and fitness club workers, cultural spheres, office managers, church employees.

The structure of governing bodies at all levels of the informal sector (3.6%) is dominated by a group of directors of small enterprises in wholesale and retail trade, public catering (1.6%); in the formal sector they are much less. The next in number are directors of leisure organizations, directors of small agricultural enterprises, heads of departments at construction and manufacturing enterprises.

Satisfaction with work and salary

in the informal sector

In conditions when the work is temporary, it becomes low-paid. “Working life,” in the words of Z. Bauman, “is saturated with uncertainty.” The survey results show that half of the workers in the informal sector are concerned about job insecurity.

More than half of those employed in both sectors are not satisfied with their salaries. The average monthly nominal salary of a worker in the informal sector was about 10 thousand rubles, the median was 8700 rubles, 50% of them had a salary below the median level. This is less than that of an employee in the formal sector: 15,311 rubles, respectively, the median is 12,500 rubles. The average and median level of wages of an informal sector worker are practically at the level living wage working, which in 2014 amounted to 8885 rubles. . According to Rosstat, the average salary of a peasant

in 2014 was 17,724 rubles. This is almost 2 times lower average salary for the economy as a whole (32,495 rubles). The indicators of the average salary and its median level for workers in the two sectors are far from the average for both the industry and the economy, i.e. the incomes of the vast majority of the population are shifted to the area of ​​very low wages.

Over the past ten years, the volume of financing of the agricultural sector from federal budget increased by 12.5 times and amounted to 1325 billion rubles. . However, this practically does not affect the key indicator - the profitability of agricultural production. According to experts, the point is primarily in the disparity in prices for industrial and agricultural products, which is withdrawn from the results of peasant labor and wages are almost halved compared to the average for the economy.

Satisfaction with other aspects of work among workers in the informal sector is also lower than among workers in the formal sector. The indicators correlate as follows: satisfaction with the duties performed, respectively, 67 and 77%, working conditions - 60 and 71%, work schedule - 72 and 83.4%, moral satisfaction - 61 and 69%, professional satisfaction - 55 and 64%.

material and financial position households

in the informal sector

In 2010, there was a sharp increase in the share of state payments in the incomes of Russians: a 30% increase in pensions, followed by indexation against the background of a much slower growth in wages, ensured that the incomes of the population were highly dependent on the budget for several years. Since 2014, the regions, faced with serious problems, began to reduce social payments or stop their indexation. At the same time, there are differences in wages by region.

Consider the average total income of households. Every tenth household in the informal sector has an average monthly income of up to 7.5 thousand rubles. In the formal sector, they are 2 times less (4.5%). In an equal share in the two sectors, a third of households had incomes of 22.5-27.5 thousand rubles. If in the formal sector 40.7% of households had a total monthly income more than 35 thousand rubles, then in the informal sector - 32.0%.

Data analysis shows that the lowest income - up to 7500 rubles. -were observed in every fifth household engaged in production, in every sixth - among farmers, in every tenth - among employees individuals. This does not even cover the subsistence minimum per employee (8885 rubles). In Russia, the official definition of poverty includes the population with incomes below the subsistence level.

More than half of the households had incomes up to 17,500 rubles, i.e. only up to two living wages.

The material situation of households of workers in the informal sector shows that many of them can be classified as poor (see Table 4).

Table 4

ESTIMATES OF THE LEVEL OF WEALTH OF RURAL HOUSEHOLDS BY SECTOR, in %

Wealth assessments Formal sector Informal sector

2011 2014 2011 2014

Incomes are not enough even for food 5.6 3.7 5.7 3.0

There is enough money for food, but it is difficult to buy clothes and pay utility bills 37.2 31.9 35.1 33.5

We have enough money for food and clothes, but we cannot afford durable goods 40.9 44.5 45.0 45.0

We can afford to buy food, clothes, necessary durable goods, but we cannot - a car 11.4 11.7 8.8 11.0

Apartment, cottage 3.0 5.0 2.4 5.0

There are enough funds to buy everything we consider necessary 2.0 3.1 3.1 2.5

Total households 1045 8415 422 1921

E.Ya.Varshavskaya

EMPLOYMENT IN THE INFORMAL SECTOR AS A PHENOMENON OF THE MODERN RUSSIAN LABOR MARKET

The last decades have been characterized in the world by a change in the forms of employment in favor of an increase in the share of its non-standard, non-traditional components, which, along with part-time, temporary, informal, self-employment, also include employment in the informal sector of the economy. Russia is no exception in this process. Already at the level of simple empirical observation, it is obvious that the informal sector plays a significant role in providing employment and incomes for

informal sector as a specific phenomenon of modern Russian market labor, its main parameters are described. The information base of our study was the “Survey of the population on employment problems of the State Statistics Committee - ONPZ (data for

2001 - 2004)" Russian monitoring economic situation and public health - RLMS (waves 2000-2004) and the National Survey of Household Welfare and Participation in Social Programs - NOBUS, conducted

From the results of the study, we note that in accordance with the Methodological Provisions for Measuring Employment in the Informal Sector, developed by the State Statistics Committee, the absence of state registration as a legal entity is taken as a criterion for determining units of the informal sector2. Accordingly, the employed in the informal sector include all citizens engaged in entrepreneurial activity unincorporated or on an individual basis, whether

Table 1

The scale and dynamics of employment in the informal sector in the Russian Federation

Total, thousand people Of them employed, thousand people Change (last period to the previous one, %)

agricultural non-agricultural activities. activities of all agricultural. non-agricultural activities. activity

2001 9184,5 3866,3 5317,0

2002 9530,4 4015,1 5515,1 +4 +4 +4

2003 10586,8 3631,5 6955,3 +11 -10 +26

2004 11500,0 3928,1 7572,0 +9 +8 +9

2001-winter 8689.2 3422.4 5266.9

2001-summer 9934.8 4622.2 5310.3 +14 +35 +1

2002-winter 8527.9 3326.5 5201.1 -14 -28 -2

2002-summer 10309.3 4468.7 5840.6 +21 +34 +12

2003-winter 8854.1 2953.9 5900.2 -14 -34 +1

2003-summer 11306.0 4150.1 7155.9 +28 +41 +21

2004-winter 10590.5 3368.1 7222.5 -6 -19 +1

2004-summer 12334.5 4895.0 7439.5 +16 +45 +3

Dynamics over a 4-year period (2004 to 2001, %) winter +22 -2 +37

summer +24 +6 +40

in the average year calculus +25 +2 +42

Source: ONPZ data. The number of employees in the summer of the K-th year is determined as the arithmetic mean of the number of employees in May and August of the K-th year; in the winter of the K-th year - as the arithmetic mean of the number of employees in November (K-1) of the year and February of the K-th year.

villages, in the production of goods and services, in the creation of jobs.

The article1 presents the results of the analysis of employment in

1 The study was financially supported by the Russian Humanitarian Foundation (Project No. 04-02-00126a). The author is grateful to Donova I.V. for their help in computing the data.

data in 2003. All these studies represent the adult population of the Russian Federation in terms of the main socio-demographic characteristics.

Since there is no uniform understanding of the terminology associated with the informal economy in the scientific literature, before proceeding to the presentation of the main

employees employed by individuals, as well as those employed in the household

2 In our opinion, the question of the legitimacy and validity of using the criterion proposed by the State Statistics Committee requires a special study, so we do not dwell on its discussion, although we acknowledge the existence of this problem.

0 I I I I I I I . I I I I . I,

2001- 2001- 2001- 2001- 2002- 2002- 2002- 2002- 2003- 2003- 2003- 2003- 2004 2004 200+ 2004 41 ((2 ((3 h4 41 s|2 ((3 h1<£ с(3 ч1 с(2 ср С)4

gsd-kv argap

□ 3 anyags per house. hohe-ve production for sale ■ Employed/Fs.persons

□ Individual/app. entrepreneurs

Fig.1. Dynamics of the main groups of people employed in the informal sector

production and processing of agricultural and forestry products intended for sale. Thus, the concept of "employment in the informal sector" is not identical to the concept of "informal employment". On the one hand, those employed in the informal sector do not include those working by oral (unregistered) employment at formal sector enterprises, on the other hand, some of those employed in the informal sector have formalized labor relations. The foregoing primarily applies to entrepreneurs without forming a legal entity who have the appropriate state registration, and to citizens working on a legally registered hire from individuals.

SCALE. According to ONPZ, in 2001-2004. 9.2-11.5 million people were employed in the informal sector, which is 11-14% of the total employed population. Moreover, employment in the informal sector is typical primarily for rural residents. Annually 10-12% of the employed urban population and 22-29% of the employed rural population work in the informal sector.

Most workers (77-83%) have their main (and only) job in the informal sector. For 17-22%, employment in the informal sector is an additional source of income. At the same time, the informally employed account for 71-74% of those with a second job. In other words, it is in the informal sector that a significant part of secondary employment is concentrated.

Employment in the informal sector is subject to the influence of seasonal factors (Table 1). In the spring-summer period, the number of people employed in the informal economy is 14-28% higher than in the previous autumn-winter period. At the same time, the most significant fluctuations in the number

The latitudes refer to those employed in the informal sector in agricultural activities, which is obviously determined by the seasonal nature of work in agriculture. During the analyzed period, in the spring and summer months, the number of people employed in agricultural work in the informal sector increased by more than a third (by 34-45%). Employment in non-agricultural activities in the informal sector is less cyclical: seasonal fluctuations in it are much less pronounced.

DYNAMICS. The total number of people employed in the informal sector for 2001-2004 increased: the average annual growth over the 4-year period was 25%. However, the dynamics of employment in the informal sector in the segments allocated by the State Statistics Committee has the opposite character. On the one hand, the number of people employed in agricultural activities in the informal sector has practically not changed over 4 years. On the other hand, the number of people employed in non-agricultural activities has significantly increased - the increase over the analyzed period amounted to more than 40%. As a result

Since then, the share of people working in the non-agricultural segment of the informal sector has increased from 58% to 66%. It should be noted that the number of people employed in agricultural work is decreasing exclusively due to the urban population, among which it decreased by 21%. The number of rural residents engaged in agricultural activities in the informal economy slightly increased over the 4-year period (by

7%). The number of people employed in non-agricultural work increased both among the urban and rural populations (growth in 2001-2004 was 39% and 55%, respectively).

The data of the State Statistics Committee make it possible to assess the dynamics of the number of the main groups of workers employed in the informal sector, namely, individual entrepreneurs (more precisely, those engaged in entrepreneurial activities without forming a legal entity), employed by individuals and home producers. The dynamics of employment as the main job in the context of these groups is shown in Figure 1.

The graph shows three

trends. Two of them have already been mentioned above - an increase in the number of people employed in the informal sector and a pronounced seasonality, which is most pronounced in the group of domestic producers, which is quite understandable, given the content and specifics of their work. The third trend is structural changes in the composition of those employed in the informal sector. Thus, the share of employed individuals increased by more than 10 percentage points (from 37-38% in 2001-2002 to 49-51% in 2003-2004). Accordingly, the share of individual entrepreneurs and home producers decreased. This trend should be spoken of with more caution and less certainty than the first two, since the noted changes refer to only two years of the 4-year period of analysis. However, we will express as a preliminary hypothesis the following

blowing considerations. The reduction in the proportion of domestic producers indicates the curtailment of the least productive part of the informal sector. The decrease in the share of individual entrepreneurs and the increase in the share of employed individuals can be seen as interrelated phenomena that act as a result of the process of strengthening the economic position of some entrepreneurs, which makes it possible for them to provide more jobs, and curtailing the activities of others.

Thus, the positive dynamics of the number of people employed in the informal sector of the Russian economy is primarily due to an increase in the number of workers performing more qualified activities than the production of products in domestic agriculture.

STABILITY OF EMPLOYMENT IN THE INFORMAL SECTOR. How stable is employment in the informal sector? Is this employment a temporary adaptation strategy, or is this employment a permanent state for most workers? To answer these questions, we analyzed the data of the Russian Monitoring of the Economic Situation and Health of the Population (RLMS) for 2000–2004. RLMS is practically the only panel study in Russia and, therefore, makes it possible to trace the change in various characteristics of the respondent, including his labor status, over several years.

The results of the analysis of the dynamics of inter-status transitions between employment in the informal sector and other conditions in the labor market (work in the formal sector, unemployment, economic

table 2

Matrices of inter-status transitions in the labor market

Status in the labor market in 2001 Status in the labor market in 2002

Busy in formal. sector Occupied in the informal. sector Unemployed Economic inactivity

Employed in the formal sector 88 3 5 4

Employed in the informal sector 40 44 8 8

Unemployed 30 8 44 18

Economic inactivity 7 1 4 88

Labor market status in 2002 Labor market status in 2003

Employed in the formal sector 87 3 6 4

Employed in the informal sector 31 55 9 5

Unemployed 29 8 45 18

Economic inactivity 7 2 5 86

Labor market status in 2003 Labor market status in 2004

Busy in formal. sector Occupied in the informal. sector Unemployed Economic inactivity

Employed in the formal sector 87 4 5 4

Employed in the informal sector 33 48 14 5

Unemployed 29 7 45 19

Economic inactivity 7 1 5 87

Source: RLMS data. The cells show the probability of transition from status / in year to status y in (K + 1)-th year (in %), which is defined as the proportion of persons who moved from the /-th state to y-th in the total population in year in

initial status /.

Fig.2. Employed in the informal sector during one, two and three observation periods Source: RLMS data.

inactivity) are presented in Table. 2.

For about half of those employed in the informal sector, this condition is temporary, limited to one year. Thus, only 44% of those informally employed in 2001 remained working in it in 2002; 55% of those employed in this way

2002 did not change their status in 2003; finally, 48% of those employed in the informal sector in 2003 retained their employment in it in 2004.

The largest outflow from employment in the informal sector occurs in employment in the formal sector. On average, about 2/3 of those who left the informal sector come to work for enterprises and organizations. The leader among the “suppliers” for jobs in the informal sector is the category of unemployed respondents, primarily the unemployed.

workers3.

The dynamism of employment in the informal sector is also evidenced by the data in Fig. 2, which shows the total population of workers with primary employment in the informal sector for three observations, each with an interval of 2 years4.

The share of the group of stable employed, i.e. those who worked in the informal sector in 2000, and in 2002, and in 2004, is 12%. If we add to them those who were informally employed at the time of two of the three surveys, then the share of the “stable” group of workers increases to 29%. For comparison, the

3 This, of course, is not about the absolute number of those who came to work in the informal sector, but about its share in the number of the corresponding “supplier” group.

4 It is clear that during the two years between surveys, the respondent could change jobs several times. Nevertheless, the fact that after 2 or even 4 years a person remains involved in employment in the informal sector still indicates the stability of this state.

We can see that the same figures for those employed in the formal sector are 58% and 79%, for the unemployed - 10% and 34%. These figures indicate that employment in the informal sector is much less stable than employment in enterprises, institutions and organizations, and in many respects similar in this parameter to the status of the unemployed.

Thus, work in the informal sector for the majority of Russian workers is a temporary phenomenon and is most often used as a short-term strategy to increase current income levels.

FORMALIZATION OF LABOR RELATIONS IN THE INFORMAL SECTOR. It has already been noted that the concepts of employment in the informal sector and informal employment cannot be considered as synonyms and overlap only partially. How are these two phenomena related? Data from the National Survey of Household Welfare and Participation in Social Programs (NOBUS) allow answering this question, unfortunately, only in

with respect to one group of people employed in the informal sector - employed by individuals.

Although we assumed that not all employment in the informal sector is legally unregistered, the results obtained were quite unexpected for us. The majority of employees, whose employers are individuals (70%!), have formalized labor relations, and only 30% work on the basis of an oral agreement. At the same time, it should be noted that employment in the informal sector makes the most significant contribution to informal employment - of all workers with informal employment relationships, 86% are employed in the informal sector.

Thus, there is no reason to assert that all employment in the informal sector lies outside the scope of the law and is associated with a violation of legal norms. In this regard, it is interesting to note that 8% of those employed by individuals gave an affirmative answer about the presence of wage arrears.

Table 3

Type of employment contract for formal and informal sector workers (in %)

All industries Trade

Formal sector Informal sector Formal sector Informal sector

Contract for an indefinite period 94.3 44.4 90.5 44.3

Fixed-term employment contract 3.9 14.5 5.3 15.4

Contract for performance of certain work 0.7 8.4 0.9 6.2

Oral agreement 0.6 29.8 2.5 31.1

Difficult to answer 0.5 2.9 0.8 3.0

Employment in the informal sector of the national economy: analysis of the current state

MM. Mahmudov,

cand. ped. Sciences, Associate Professor, Associate Professor, Tyumen State Oil and Gas University (625000, Russia, Tyumen, Volodarskogo str., 38; e-mail: [email protected])

Annotation. The article presents an overview of current trends in employment in the informal sector of the economy. The dynamics of the scale of employment in the informal sector of the national economy is described. The regional and sectoral aspects of the involvement of the population in informal entrepreneurship are considered.

abstract. The article presents an overview of current trends of employment in the informal sector of the economy. Describes the dynamics of employment in the informal sector of the national economy. Reviewed regional and sectoral aspects of community involvement in informal entrepreneurship.

Key words: employment, informal sector, individual entrepreneurship, self-employment.

Keywords: employment, informal sector, entrepreneurship, self-employment.

The informal sector of the economy is a set of small economic units that carry out entrepreneurial activities on the basis of households or individually, with the aim of self-organization in the process of self-survival and adaptation of business entities. Economic activity in the informal sector does not involve types of economic activity prohibited by law and is characterized by a small scale, lack of formalization, institutionalization of economic activity of subjects. In modern practice, most often, economic activity in the informal sector of the national economy is carried out by individuals or with the help of unpaid family members, or with the involvement of one or more paid workers.

Today, as a result of the transformation of the economic system of management, the scale and role of the informal sector of the economy have significantly increased. As a result, employment in the informal sector has reached a significant scale; the majority of the population resorts to its services to one degree or another. The informal sector is a separate segment of the labor market and has a significant impact on the state of employment and the socio-economic situation in general.

The dynamics of the employed population in the informal sector of the national economy is described over the analyzed period by a positive growth trend (see Fig. 1). Yes, in 2014. 14387 thousand people carried out economic activity in the informal sector, which is 5% higher than the level of the previous 2013. The share of people employed in the informal sector in the total number of employed population is also steadily increasing: if in 2012. their share was 19%, then in 2014. this figure rose to 21%.

Moreover, the growth rate of employment in the informal sector outstrips the growth rate of total employment in the country, which suggests the "popularity" of the informal sector in modern conditions and the increased motivation of subjects to participate in it. Today

Russians who prefer professional mobility and strive for new knowledge find employment options in the informal sector, which is characterized by low barriers to development and realization of entrepreneurial abilities.

The gender difference between those employed in the informal sector of the domestic economy is not pronounced: the share of men employed in this sector is about 21%, while women occupy 18%. Most of the informal sector entities (91% of the total number of those employed in the informal sector) are employed only in this segment, however, 9% of the participants in this sector combine employment in the formal and informal sectors of the economy.

employed population in the national economy ■ employed population in informal sects ope

Rice. 1. Dynamics of the employed population in the country's economy, thousand people

The informal sector of the economy is attractive both for the population of cities and for rural residents. However, urban residents are predominantly employed in this sector, for the period of 2012-2014. accounted for 62% of the total employed population in the informal sector. At the same time, by the end of 2014 the share of rural residents involved in the informal sector increased to 40%.

Household-based self-employment is widespread in the catering and hotel business (see Figure 2), where 23.11% of the total employed population is concentrated in the informal sector. Significant share

wholesaler and retailer in providing jobs in the informal sector. In industries where the material and technical base is based on the use of large-scale investments and requires serious professional training of workers, medium-sized enterprises are being formed that are not

healthcare

Construction

Before t o m e n e r e s

Production and distribution of electricity, gas and water

Financial activity fish farming

Utilities and social services

Agriculture, hunting and forestry

Wholesale and retail trade; household

Government:initi andrestaurants

Rice. 2. Sectoral structure of employment in the informal sector, % .

which are a structural element of the informal sector of the national economy. Thus, the share of people employed in a few enterprises in the extractive and manufacturing industries, construction companies, and health care institutions operating in the informal segment of the economy is insignificant.

The predominant part of those employed in the informal sector (more than 57% of the total number of those employed in this sector) carry out labor activities on the terms of contracts (in written or oral form) for an agreed wage, that is, they work for hire. These can be employees who perform both managerial functions and hired for seasonal

work. However, in the dynamics of those employed in the informal sector, today there has been a tendency towards an increase in the number of workers working "for themselves" (see Fig. 3). Yes, in 2014. 6,050 thousand people employed in the informal sector provided themselves with work, which is 3.3% more than in 2012.

■ self-employed ■ self-employed 3. Dynamics of the employed population in the informal sector by status, thousand people

Joumal of Economy and Entrepreneurship, Vol. 9, no. 5-1

Workers involved in the informal sector usually already have professional experience in a particular area, since the average age of those employed in this sector is 40 years. Minimal participation in the informal segment of the national economy is characteristic of young people and the elderly.

Actively working in individual entrepreneurial business units are employees who have a secondary education and do not hold diplomas of vocational education (see Fig. 4). A significant proportion of workers in the informal sector with primary and secondary education (22%, respectively, in the total structure of those involved in the informal sector) suggests that this sector is attractive for workers.

do not have a basic

professions. Persons without education are not in demand in the enterprises of the informal sector of the economy, and their share of presence does not exceed one percent of those employed in this sector. This trend suggests an inverse relationship between the level of education and involvement in the informal sector.

However, recently there has been a trend of increasing the participation of workers with vocational education at both the primary, secondary and higher levels. Yes, in 2014. specialists with higher education were employed in informal entrepreneurship by 7.5% more than in the previous 2013. Number of graduates of secondary and primary vocational educational institutions in 2014 was involved in the informal sector by 3% and 6%, respectively.

2014 "2013

basic

average (full) general

initial vocational

secondary vocational

higher professional

0 1000 2000 3000 4000 5000

Rice. 4. Dynamics of the employed population in the informal sector by level of education, thousand people

An analysis of the regional structure of the employed population in the informal sector of the national economy revealed a significant differentiation in its distribution. Thus, almost half of the employed population in the regions of the North Caucasian Federal District is involved in the informal sector (see Fig. 5). Moreover, in 2014 compared to 2013 the number of people involved in informal entrepreneurship in the district increased by 4.5% and amounted to 1819 thousand people. This trend is due to the unfavorable socio-economic situation in the region, where the population survives through self-employment in the informal business sector -

dominant segment of the regional economy.

The share of informal employment is also significant in the regions of the Southern Federal District, where more than a quarter of the employed population is involved in the informal sector. The employment of the population in informal business structures is also high in the regions of the Volga, Siberian, and Far Eastern federal districts.

The minimum involvement of the population in the informal sector of the regional economy is typical for the Northwestern and Central federal districts.

North Caucasian Federal District Southern Federal District Privolzhsky Federal District Siberian Federal District Far Eastern Federal District Urals Federal District Central Federal District North-3rd Western Federal District

■ 1014 ■ 2013

Rice. 5. Regional structure of employment in the informal sector, in % of the total employed population.

MAKHMUDOVA M.M. - 2015

SMALL BUSINESS IN THE RUSSIAN ECONOMY: ANALYSIS OF MODERN DEVELOPMENT TRENDS

MAKHMUDOVA M.M. - 2015

SMALL BUSINESS SECTOR IN THE STRUCTURE OF THE ECONOMY OF A LARGE INDUSTRIAL REGION: ANALYSIS OF MODERN DEVELOPMENT TRENDS

MAKHMUDOVA M.M. - 2015