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Regular version of the site

Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Ekaterina Karaseva
Informal Employment: the Choice of a Low-Educated Population?
Economics
(Bachelor’s programme)
2018
The paper is an attempt to examine problematic issues of labor market, in particular, informal workers, who work without any contract and self-employed people. In article the main theoretical works of scientists from the different countries reflecting informality problems in labor market are considered. Now this is a problem for the majority of the countries, not only developing, but also developed. Informality is determined by many factors. The main point of this paper is the connection of informality in labor market and person’s level of education. Furthermore, the size of informal sector and the decision to become informal worker derive not only from personal factors (microeconomic factors) but also from economic and political situation in the country. Therefore, influence of basic characteristics of countries is examined in the paper. The analysis of the determinants of informal employment, based on the European Social Survey and the Russia Longitudinal Monitoring Survey for 2004-2016.

Thus, we hypothesized that with higher education, the individual reduces his chances of entering the informal sector.

The dependent variable in the econometric analysis is the type of employment of the individual (formal or informal). The main method of evaluation in the work is the use of logistic regressions. Four regressions were constructed for each of the three samples, with the gradual addition of certain groups of variables, to assess in more detail the impact of different variables by means of a different set of control variables. 4 levels of education were allocated for each sample: incomplete secondary, secondary special and higher. The level of secondary education was taken as a basic variable.

As the main result, it was found that the level of education really affects the likelihood of being in the informal sector. So incomplete secondary education increases these chances, and higher education, on the contrary, reduces them.

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