The Dynamics of Moonlighting in Russia: What is Happening in the Russian Informal Economy?

Posted: 9 Nov 2009

See all articles by Alessandra Guariglia

Alessandra Guariglia

University of Birmingham - Department of Economics

Byung-Yeon Kim

affiliation not provided to SSRN

Date Written: 2006

Abstract

This studyconsiders the role of informaleconomic activities, includingmoonlighting in second jobs, in Russia. Theinformal economy is defined as legal production activities that should beregistered with authorities but are not, and other income-producing householdproduction of goods and services that are undeclared. The study uses micro-data to examine the dynamics of the Russian informaleconomy, and especially the dynamics of moonlighting by the country'sworking-age population. A nationally representative longitudinal survey ofRussian citizens is used, the Russian Longitudinal Monitoring Survey (RLMS),for the period 1994-1998. The survey uses a representative sample of several thousand households inthe Russian Federation, and includes household income and budgets. The findingsshow that previous moonlighting is negatively associated with the likelihood ofpresent moonlighting. Instead, it is suggested that Russia's moonlighting istransitory, and workers usually return to a single-job pattern. The findings also estimate that workers who moonlighted as self-employed inthe past comprise 26.5% of the new self-employed segment. The intention tochange jobs is predicted to end up in an actual job, suggesting an interactionbetween the study's variables--i.e., moonlighting, an intention to change jobs,and an actual job change. Ultimately, moonlighting is perceived as beneficialto the economy in the long run. (CBS)

Keywords: Moonlighting, Informal economies, Undeclared employment, Employment patterns, Economic transitions, Self-employment

Suggested Citation

Guariglia, Alessandra and Kim, Byung-Yeon, The Dynamics of Moonlighting in Russia: What is Happening in the Russian Informal Economy? (2006). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1502552

Alessandra Guariglia (Contact Author)

University of Birmingham - Department of Economics ( email )

United States

Byung-Yeon Kim

affiliation not provided to SSRN

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