Informal Employment and the Shadow Economy: Essence and Social Functions

Abstract

An overview of existing approaches to the concept of the shadow economy and its role in the development of the country is given in the article. The authors describe the shadow economy as a socioeconomic phenomenon that has a significant impact on the labor and social situation in Russia, and in particular in the Tyumen region, in connection with which data on the situation in the labor market and informal employment are presented in the article. The analysis of the socioeconomic situation, social and economic policy, which is implemented in modern Russia, is given in the context of social indicators and in relation to other countries. The article is devoted to the study of the shadow economy of Russia in modern conditions. The volume of the largest shadow economies of the world is considered in the article. The main factors determining the scale of the shadow economy in Russia are identified, the statistical data of informal employment are analyzed. The main trends of modern socioeconomic policy are described in the article in connection with the importance of the problem of the shadow economy and informal employment. Measures to reduce the rate of informal employment with a focus on its sources and causes are systematized. 1. Introduction