1. Informal Employment in Russia: Overview Oksana Sinyavskaya Daria Popova Workforce Development and Skills Mismatch — GPN Methodology Seminar 26-28, June 2003

2. Russia's output, population, and employment growth (% change) * estimate

3. Total (Based on the ILO Definition) and Registered Unemployment

4. Distribution of Unemployed by Average Duration of Searching a Job: 1992 - 2001

5. Differentiation of Wages and Incomes: 1991 - 2001 0.3960.3990.4000.4010.3870.3810.4090.260Gini Coefficient for Incomes 13.8 13.913.813.013.515.14.5Decile Coefficient for Incomes 0.5070.4830.4800.4470.4450.4540.4390.317Gini Coefficient for Wages 39.634.032.125.024.026.423.47.8Decile Coefficient for Wages 20012000199919971996199519941991Indices of Differentiation

6. Poverty Rate and and Poverty Gap: 1992-2000

7. Poverty rates (per cent): Russia’s Statistics Committee data

8. A Conceptual Framework: the Informal Employment Informal Employment In informal enterprises Informal own-account enterprises Enterprises of informal (unregistered) employers with less than 5 employees Outside informal enterprises = “shadow” employment For formal enterprises For households With no fixed employer

9. DATA SOURCES Population Surveys on Employment Issues (Russia’s State Statistics Agency - Goskomstat), quarterly, since 1999, N = appr. 250- 260 thousands respondents Population Survey on Social and Economic Situation of Russia’s Population (Carnegie Moscow Center), 2000, N = 5000 households Russia’s Longitudinal Monitoring Survey (Institute of Sociology and Institute of Nutrition of Russian Academy of Sciences, and Paragon Research International), panel since 1994, autumn of 1998-2001, N = appr. 4500 households (more than 10000 respondents) VCIOM’s Monitoring (Russian Center for Public Opinion and Market Research - VCIOM), 1998-2001, November, N = appr. 2400 respondents

10. EMPIRICAL DEFINITIONS Data sources: Russia’s State Statistics Agency CMCRLMSVCIOM Non- registered contracts -+++ Grey wages/salary etc. -+-- Shadow Economy: Informal Labor Relations in Formal Sector

11. EMPIRICAL DEFINITIONS Informal Economy Russia’s State Statistics Committee - Goskomstat Criteria for a firm / enterprise Firm is not registered Individual entrepreneurIndividual entrepreneurship without registration Working for a person + Working for an employer in paid employment Without registration; for own/family enterprise; member of a producer’s cooperative Working in a farm + Working for a household for producing smth. for realization +

12. EMPIRICAL DEFINITIONS Informal Economy Household Survey of Carnegie Moscow Center (2000) Criteria for a firm / enterprise Less than 5 employees/ individuals Individual entrepreneurIndividual entrepreneurship/ self-employment without registration Working for a person - Working for an employer in paid employment - Working in a farm - Working for a household for producing smth. for realization -

13. EMPIRICAL DEFINITIONS Informal Economy Russia’s Longitudinal Monitoring Survey Criteria for a firm / enterprise Family enterprises/ cooperatives/ individuals Individual entrepreneurIndividual entrepreneurship & self-employment Working for a person- Working for an employer in paid employment Working not at enterprise, not at an organization, engaged in some additional kind of work without any agreement, official contract or license Working in a farm- Working for a household for producing smth. for realization -

14. EMPIRICAL DEFINITIONS Informal Economy VCIOM’s Monitoring Criteria for a firm / enterprise Individuals Individual entrepreneurSelf-employment Working for a person- Working for an employer in paid employment Working for an own / family enterprise with employees Working in a farm- Working for a household for producing smth. for realization -

15. Informal Employment in Urban and Rural Area * * Russia’s State Statistics Agency – Goskomstat 2001

16. Informal Employment in Rural Area: Composition of Per Capita Aggregate Receipts by Income Groups Respondents with per capita aggregate receipts: Below 1 SM1 – 2 SMAbove 2 SM XI 1998 X 2000 X 2001 XI 1998 X 2000 X 2001 XI 1998 X 2000 X 2001 Wages 17,618,518,414,418,321,411,320,718 State transfers 27,635,840,329,53627,313,513,610,7 Receipts from household production, including: Money income Money equivalent of consumed household production 42 2,1 39,9 34,9 3,9 31 26,5 7,1 19,4 43,2 8,2 35 35,1 7,4 27,7 37,7 18,6 19,1 55,1 17,5 37,6 37,9 15,7 22,2 49,9 33,4 16,5 Non-state transfers 11,39,47,79,87,67,910,711,46,3 Other money receipts 1,61,17335,69,46,815 Total 100

17. Dynamics of Informal Employment in Formal and Informal Sectors, Urban Population, Multiple Jobs (% of total employment) * Goskomstat (National Statistics Agency) data do not include any of shadow employment ** 8.9% for share of urban population employed in informal sector in non-agriculcural activities

18. The Unit Weight of Expenditure on Work remuneration in GDP and Cost of Inputs into Production 20,320,821,923,0 23,826,9 Construction 14,414,113,313,7 15,8… Agriculture 12,011,812,812,111,510,613,0 Manufacturing industry The unit weight of wage costs in costs of inputs into production and sales of products (services) by branches of economy: 11,111,010,111,7 10,4- Hidden 28,929,937,138,337,934,848,8 Official Including: 40,040,947,250,049,645,248,8 The unit weight of wages of employees (including hidden wages) in GDP 2000199919981997199619951990

19. Structure of Informal Employment, Urban Population 2000 * Value equals to 1

20. Gender Composition of Employment in Informal Sector, Urban Population

21. Education Profile of Informally Employed, Urban Population / Main Job, 2000

22. Age Profile of Informally Employed, Urban population / Main Job, 2000

23. Spheres of Concentration of Informal Employment: Branches of Economy, Urban Population * main / the only job

24. Spheres of Concentration of Informal Employment: Professional Groups, Urban Population / Main Job

25. Concepts of informal employment: Formal, informal and self-employment, Informal employment outside informal enterprises, Informality within labor contracts, Working at home, on the streets, etc., Informal employment in rural area, Policy implications: Inequality in informal economy: vulnerable groups, Social guarantees, wages/salaries, and working hours Issues for Future Research

26. Data: Comparability of empirical definitions used in surveys, Detailed questions / special survey on informal employment, Improving both qualitative and quantitative researches Issues for Future Research (cont.)