Svetlana VoroninaPublished in:
Russian Journal of Entrepreneurship
– Volume 17, Number 3 (February, 2016)



Keywords: aggregate labor performance, gross value added, informal economy, region, workforce reallocation


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Abstract:

The author studies the influence of the growing number of employees working in the informal economy on the aggregate labor performance in Russian territorial entities. It has been revealed that in most regions, a reallocation between the employees in the formal and informal economies takes places, changing labor performance. The regions in which the informal sector functions as a “donor” to the formal one have also been pointed out by the author. The reallocation effect is positive whenever the labor market institutions facilitate the development of conditions for labor performance improvement. The study may be of interest for the professionals in the field of state market regulation, as well as for a broad circle of people taking interest in this subject.

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