Informal Economy Activities and Entrepreneurship in Russia

Byung-Yeon Kim

No 55, Proceedings of the German Development Economics Conference, Hannover 2010 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: This paper uses the Russian Longitudinal Monitoring Survey (RLMS) from 1998 to 2004 to analyze the effect of previous informal economy activities on the creation of official entrepreneurship. We find that previous participation in the informal economy is positively associated with the probability to become registered entrepreneurs in the present. We also find that that self-employment is used as a transition mechanism to entrepreneurship and moonlighters in the past are more active in actual job changes. Furthermore, a survival function analysis suggests that previous experience as self-employed moonlighters enhances the probability of success as official entrepreneur. Workers who moonlighted as selfemployed in the past represent 16-22% of the new entrepreneurs.

Keywords: Informal economy; entrepreneurs; Russia (search for similar items in EconPapers)
JEL-codes: J22 J24 O17 P20 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cis, nep-ent, nep-lab and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec10:55

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