CEBE Study: “Self-Employment in Russia: Contribution to the national economy and prospects for the development of the institution”

In recent years, self-employment has evolved from a limited mechanism for legalizing specific types of employment into a significant economic institution encompassing millions of citizens and a wide range of activities. Today, the self-employed contribute to economic growth, ensure labor market flexibility, help reduce unemployment, and serve as an important channel for integrating the economically active population into the formal economy.

The study focused on analyzing the contemporary profile of the self-employed, including sociodemographic characteristics, employment models, and patterns of interaction with digital platforms. A comprehensive legal study of the self-employment regime was also conducted, including an analysis of current regulations, international experience, and extensive body of case law (over 200 court decisions were analyzed covering the entire period of the regime’s existence). Based on the data obtained, potential measures for developing the institution after the experiment concludes in 2028 have been proposed.

Authors paid special attention to an evidence-based approach—mathematical modeling of the self-employment segment to quantitatively assess the current contribution and the impact of implementing the proposed potential measures for developing the institution. To assess the contribution of self-employment and the potential effects of the proposed measures, the study utilized results from nationwide surveys of self-employed individuals (N>2000) and business representatives (N>500), as well as “big data,” including anonymized data on banking transactions in the self-employment segment.

The study’s findings may be useful in shaping government policy in the areas of employment and taxation, as well as in developing balanced solutions that take into account the interests of the state, business, and the self-employed themselves.