Prospects for countering shadow employment and tax evasion: what empirical data says

This article analyzes the key issues of shadow employment in Russia based on house hold survey data. It is shown that a significant share of workers are unaware of the legal nature of their employment relationships and the mechanisms through which employers with hold taxes. The phenomenon of undeclared workers who report paying taxes is discussed. The paper examines the incentives for partial tax evasion. It also highlights wage disparities and traces the evolution of the shadow employment model.