EMPLOYMENT IN THE INFORMAL SECTOR OF THE ECONOMY: A CASE STUDY OF RUSSIAN NORTHERN REGIONS

Abstract

This article explores employment in the informal sector across Russian northern regions and studies factors that affect the employment rate in this sector. The research aims to examine various facets of this subject, encompassing the role of informal employment in job creation. Drawing on data from international organizations, domestic research, and statistics, the study reveals the significant role played by the informal sector in the country’s economy. Utilizing a production approach, the article analyzes the structure of informal employment in the northern regions of Russia and identifies three groups of factors influencing employment rates. For these three groups, indicators were chosen that formed the basis for the analysis of employment trends in the informal sector. Using official statistics for 2005-2022 while considering the comparability of data collection and processing methods, the study assesses the level of informal employment in northern regions and studies how it is influenced by the economic factors under question. Despite a high Gross Regional Product (GRP) per capita, the study reveals that existing institutions do not contribute to the population settling in the North. The article highlights variations in informal employment rates. It underscores the importance of stimulating sector formalization, improving the quality of life in the North, and supporting economic growth. The study’s results can inform regional policies addressing employment and social services.

Keywords

• informal sector
• employment
• region
• northern context
• production approach