Page 37 - RPTRusFeb17

declining real and disposable income to 2010 levels, young Russians are increasingly deciding to take matters into their own hands. The proportion of those who have only enough money only for food was 36% in February 2017 against 21% in February 2014, according to VTsIOM but those who can only afford food and clothing has shrunk to 38% from 58%.
Shadow economy businesses have widespread acceptance in Russia: 64% of Russians are willing to work or buy from unregistered business vs 25% who consider it a crime, according to VTsIOM. The majority (56%) of Russia’s believe it is impossible to conduct honest business in Russia, while 41% think the opposite, compared to a 69%/21% split in 2007.According to the Center for Socio-Political Monitoring RANHiGS the average income amongst Russian households includes RUB6,100 of “grey payments” in 2016 down from RUB7400 rubles in 2013. Grey wages were down by about 15-17% in 2016, while the relative share of social benefits rose to record levels in the same period.
The main reasons respondents cited for setting up illegal businesses was low income (30%), greed (29%), high tax levels (29%) amongst other things (where multiple choices were allowed in the survey).
The main sources of income included: pensioners/students/etc with no earned income (39%); only an official income (43%); and private entrepreneurs (6%), of which only 14% had registered their business with the authorities.
Every sixth respondent (16%) in the sample has at least part of their income paid off the books , including almost one in ten (9%) - only informal. And a quarter of respondents said they were moonlighting in a second job (23%). Among employed respondents 11% reported that they were working on the basis of an oral agreement with the employer while 86% have a permanent or temporary contract. The largest proportion of informal labor relations among young people aged 18-24 (24%) and people 60 years and older (16 %).
Almost all income gains in the last two decades have accrued to the top 20% of Russians, but there have been some major gains, according to the EBRD.
37 RUSSIA Country Report February 2017 www.intellinews.com