Informality and Mobility: Evidence from Russian Panel Data

30 Pages Posted: 2 Nov 2013

See all articles by Fabian Slonimczyk

Fabian Slonimczyk

National Research University Higher School of Economics (Moscow)

Vladimir Gimpelson

National Research University Higher School of Economics (Moscow); IZA Institute of Labor Economics

Abstract

Informality is a defining characteristic of labor markets in developing and transition countries. This paper analyzes patterns of mobility across different forms of formal and informal employment in Russia. Using the RLMS household panel we estimate a dynamic multinomial logit model with individual heterogeneity and correct for the initial conditions problem. Simulations show that structural state dependence is weak and that transition rates from informal to formal employment are not lower than from other origin states. These results lend support to the integrated view of the labor market.

Keywords: informality, labor mobility, initial conditions problem, state dependence

JEL Classification: J6

Suggested Citation

Slonimczyk, Fabian and Gimpelson, Vladimir, Informality and Mobility: Evidence from Russian Panel Data. IZA Discussion Paper No. 7703, Available at SSRN: https://ssrn.com/abstract=2349026 or http://dx.doi.org/10.2139/ssrn.2349026

Fabian Slonimczyk (Contact Author)

National Research University Higher School of Economics (Moscow) ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Vladimir Gimpelson

National Research University Higher School of Economics (Moscow) ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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