Shadow labor market and economic security of Russia: problems and prospects

Теневой рынок труда и экономическая безопасность России: проблемы и перспективы

Akyulov, Robert (Акьюлов, Роберт) ()
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Akyulov, Robert (Акьюлов, Роберт): Russian Presidential Academy of National Economy and Public Administration, Ural Institute of Management

Munitsipalitet: ekonomika i upravlenie / Municipality: Economics and Management, 2020, 97-106

Abstract: The article examines the structure of the national security of the state, including social, economic, informational, demographic, internal political and military. To study factors affecting national security in economic field, a methodological approach is used and such phenomena as shadow economy, shadow labor market and the degree of their impact on the national economic security is comprehensively analyzed. I the framework of the research shadow economy was considered as a system of interconnected elements. Entrepreneurs and employees deliberately covering up their economic relations from the state, as well as corrupt government officials and criminal figures engaged in illegal activities form the basis of shadow economy. The research covers aspects of illegal economic activity of economic entities providing false reports on income, shadow employment of the economically active population, illegal financial transactions, public servants inefficiently performing their duties or intentionally contributing to the development and increase of the scale of shadow economic processes. The characteristics of the shadow labor market are given, including such signs as non-availability of official labor contracts with these employees in the employer’s electronic database, non-compliance with the required sanitary standards and rules, cash settlements and lack of national social protection guarantees for employees. The conclusion is made that shadow economy significantly holds back economic growth, contributing to the illegal turnover of capital and labor and to reducing revenues to the state budget because of underpaid taxes and levies on the hidden income. In its turn this leads to underfunding of social sectors, which reduces the level and quality of life of the population. Purpose: to develop measures for reducing shadow labor market and shadow employment to strengthen the national economic security based on statistical analysis of the dynamics of these phenomena and the entire shadow economy. Methods: comparative analysis of statistical data, content analysis, research data systematization. Results: the typology of illegal economic activity hurting national security in the economic field is given and specified and the causal connection between certain major socio-economic and political phenomena is identified which affects the country’s economic security this way or another. Scientific novelty: the article specifies the concept of the “shadow economy”, reveals the essence of the phenomenon and its relationship with the shadow labor market. Main trends of the shadow economy development are identified. The author justifies the need to develop and implement the public policy aimed at strengthening national security in the economic field, on the basis of major structural reforms both in economy and in the system of public authorities.

Keywords: national security; economic security; shadow employment; shadow labor market; illegal labour force (search for similar items in EconPapers)
Date: 2020
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