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Статья

Job Satisfaction and Terms of Informal Employment Choice in Russia

This paper is dedicated to the relationship between informal employment and job satisfaction. The reason why this issue is very relevant is because of the position that informal employment takes in the economy of the Russian Federation. The value of researching the mechanisms of the informal sector of the functioning labor market cannot be underestimated due to the great amount of informally employed workers in the Russian economy. Ordered choice models with sample selection correction were estimated on the Russian Longitudinal Monitoring Survey of HSE (RLMS-HSE) data. The key result of the paper is that subjective well-being is not determined by employment status itself. The conditions of one’s choice are the main factor, of which determination is crucial. A small difference in the attitude to work was discovered between individuals who went into the  informal sector because of their own choice and workers with registered employment. So they have no incentives for seeking to formalize their status, which could mean further growth of the informal sector.