Approaches to Regulating Informal Employment: Theory and Practice

Abstract

The issue of spreading informal employment is relevant for many countries, regardless of their level of socio-economic development and has pronounced geographical and national specific features. Most countries try to optimize this phenomenon and maximize legalization of labor relations. The author of the paper analyzes various approaches to regulate informal employment, including those existing within the framework of dominant schools of thoughts, as well as implemented in practice by separate countries. Through analysis of existing theoretical and applied approaches, the author sets the goal of finding relevant solutions aimed at reducing informal employment and improving the quality of the general employment structure for the Russian labor market. Integration of successful foreign practices in Russian conditions can reduce the time and costs of implementing respective programs, as well as increase their effectiveness. The main conclusion of the study is that reduction of informal employment depends on implementation of integrated and systemic measures covering all areas of the institutional, economic, social and legal environment. In conclusion, proposals are presented which, according to the author, can form the basis of the state program of legalizing employment.