TRENDS OF FUNCTIONING OF THE INFORMAL SECTOR OF THE UKRAINE ECONOMY

Abstract

In the article was investigated tendencies of functioning of the informal sector of the economy. Was proposed the methodical approach which combines a method of informal employment (according to the materials of the State statistics service of Ukraine) and the method of income earned in the informal sector of the economy (according to author's calculations using expert estimation). In the article was analyzed the dynamics of the informal economy on the grounds of place of residence, gender andage characteristics and education level of the population. Investigated the quantitative and qualitative aspects of employment in the informal sector of the economy, and grounded the necessity of creating preconditions for the prevention of the growth of the informal sector of the economy. It is argued that the reasons of specialspreading of informal relations in rural areas is the reduction of employed in agriculture through the change of organizational and legal forms of rural enterprises, liquidation of collective farms. The presence of a powerful, modern means of labor in crop and livestock production contributes to the release of additional workforce, so sphere of use of labor became illegal work in various industries, working in home gardens and on farms that is illegal or unreported. If earlier in cities informal employment did not become widespread in connection with employment opportunities in the formal sector of the economy, in 2011-2015 the decrease of rural population due to mortality and migration, destructive processes that have occurred in the industry of Ukraine in connection with military action, has caused the growth at a more rapid rate of employmentof urban population in the informal sectorof the economyof cities.

Authors and Affiliations

Alina Khodzhaian, Bogdan Ganzha

Keywords

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  • EP ID EP171132
  • DOI 10.17721/1728-2667.2017/190-1/5
  • Views 109
  • Downloads 0

How To Cite

Alina Khodzhaian, Bogdan Ganzha (2017). TRENDS OF FUNCTIONING OF THE INFORMAL SECTOR OF THE UKRAINE ECONOMY. Вісник Київського національного університету імені Тараса Шевченка. Економіка., 1(190), 35-41. https://europub.co.uk/articles/-A-171132