Informal Employment of Russian Youth: an Analysis of Human Capital Characteristics

This study analyzes the key characteristics of informally employed Russian young workers’ human capital and reveals the relation between these characteristics and the youth’s choice in favor of informal employment. It is conducted with descriptive and regression methods and uses the data from RLMS-HSE dataset over the period of 2014-2019. The results suggest the existence of a positive correlation between the relatively low level of human capital characteristics (education, additional training, work experience, health) and the choice of informal employment. The study also demonstrates that employers are significantly less likely to invest in informal employees’ training. This together with a relatively large share of informally employed youth in the labor market may cause negative economic consequences in the long run.