The Level of Incomes of the Population as a Factor in Forming Shadow Employment: the Regional Aspect

The authors analyze the level of income as a determinant of employment in the shadow (informal) sector and differentiation of the economy of the far East Federal Okrug regions according to the prevalence of this phenomenon. In terms of reducing the demand for labour, rising prices and, accordingly, reduction in real incomes, risks increase of community involvement in shadow employment. Object of the Study. Incomes of the formal sector of the economy as a factor of forming shadow employment. Subject of the Study. Analyzing the impact of low incomes on the size and spatial differentiation of informal employment in the regions of the Far East Federal Okrug. Purpose of the Study.  Analyzing the income level of the population in the far East Federal Okrug and identifying the basis of the results of such analysis, existing incentives for the transition of the population from the official labour market in to the shadow sector. Contents of the Article. On the basis of the Rosstat the level of income of the population of the far Eastern Federal district as a factor in facilitating the transition of people from the official economy into the shadow one has been studied. The authors analyze tendencies of development of shadow (informal) employment. It is established that in the Far East Federal Okrug regions the low level of income, often located in poverty creates a lot of opportunities for forming and further growth of employment in the informal sector of the economy.