2016, №1

The impact of changes in the Russian legislation in 2001-2002 on informal employment


The study of informal employment is an important task. The paper analyzes the impact of the income tax reform and pension system transformation, conducted in the 2000s in Russia at the probability of informal employment choice. Econometric estimation is based on difference-in-differences models and was conducted using representative data of the RLMS-HSE. The impact of reforms on the probability of choosing informal employment estimated for each reform separately, and for the overall impact of the reforms. Complementary log-log specification and model with fixed effects are used. Due to possible different paths of sector employment selection for men and women, the relations between the reforms and informal employment estimated on the subsamples for men and women separately. According to the results, change of income tax reduces informal employment, nevertheless cross effect of the reforms is insignificant.

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Anna I. Vodopyanova – Student, Higher School of Economics (Nizhny Novgorod, Russian Federation; e-mail: vodopianovaana@yandex.ru).

Lyudmila A. Leonova –  Senior Lecturer of the Department of Mathematical Economics, Higher School of Economics, Nizhny Novgorod, Russian Federation;  e-mail: lleonova@hse.ru).