| In the section | Articles |
| Title of the article | Legalization of Informal Employment as a Reserve for Increasing Revenues to the Pension System of Russia |
| Pages | 130—147 |
| Author 1 | Elena Vitalievna Chistova Candidate of Economics, Senior Research Fellow Economic Security Center Institute of Economics of the Ural Branch of RAS 29 Moskovskaya Street, Yekaterinburg, Russia, 620014 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-0446-1555 |
| Author 2 | Alexander Nikolaevich Tyrsin Doctor of Technical Sciences, Professor, Head of Applied Mathematics Department Ural Federal University named after the first President of Russia B.N. Yeltsin 5 S. Kovalevskoy Street, Yekaterinburg, Russia, 620002 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-2660-1221 |
| Author 3 | Alexan Arturovich Azaryan Postgraduate at Applied Mathematics Department Ural Federal University named after the first President of Russia B.N. Yeltsin 5 S. Kovalevskoy Street, Yekaterinburg, Russia, 620002 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0003-0298-8115 |
| Abstract | In this study the aim was to determine of options for increasing insurance contributions to the Russian pension system.. As a reserve for growth of revenues to the pension system are considered, the growth in the number of employees (payers of fees) through the legalization of informal employment. The paper is formulated and solved an optimization problem of the legalization of the informal economy in the framework of the current PAYG pension system while raising the level of pensions up to 40% of lost earnings in the context of economic activities and the subjects of the Russian Federation. It’s was built an optimization problem of nonlinear programming on the basis of balance equations of a distributive pension system. The paper presents a number of calculations on the basis of which conclusions are made. First, to increase the level of pensions in Russia, such a reserve as the legalization of informal employment is significant, but insufficient. Secondly, a 40% wage replacement rate can be achieved only in case of virtually complete legalization of population employment in the informal sector. Thirdly, the authors identified the particular characteristics of informal employment legalization in specific economic activities and subjects of the Russian Federation |
| Code | 331.101.26+369.544 |
| DOI | 10.14530/se.2017.4.130-147 |
| Keywords | pension system ♦ informal employment ♦ wage replacement rate ♦ economic activity ♦ optimization problem ♦ subjects of the Russian Federation |
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| For citation | Chistova E.V., Tyrsin A.N., Azaryan A.A. Legalization of Informal Employment as a Reserve for Increasing Revenues to the Pension System of Russia. Prostranstvennaya Ekonomi-ka = Spatial Economics, 2017, no. 4, pp. 130–147. DOI: 10.14530/se.2017.4.130-147. (In Russian). |
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| Financing | The research has been supported by the Grant of the Russian Science Foundation (the Project №14-18-00574 “The information-analytical system “Anticrisis:” diagnostics of the regions, threat assessment and scenario forecasting for the preservation and strengthening of economic security and well-being of Russia) |
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