Economics, Sociology of Labor and Demographic

The impact of the shadow economy on Russia's socio-demographic security

Authors: D. B. A., Лизина О. М., Mot`kin V. N.


The article presents a general description of the shadow economy and analyzes its main consequences. The role of social and cultural development of the country in the emergence and functioning of the shadow economic activity is noted. A special emphasis is made on those factors of shadow economy that affect the socio-demographic security of the country: economic and social stratification of the society; increase of specific share of population living below the poverty line, which is a direct consequence of shadow economic activity. Various scientific approaches to the term “socio-demographic security” have been analyzed. The author’s interpretation of the term “socio-demographic security” is presented. The article describes the dual nature of the shadow economy: its positive and negative impact on socio-demographic processes. In the framework of the positive impact it is determined that shadow economic relations help to survive in crisis situations by providing the population with the opportunity to find employment and earn extra income; products produced by enterprises engaged in the shadow sector are not subject to taxes and are cheaper for customers. A set of empirical studies has shown that the shadow economy has a greater negative impact on socio-demographic security: the residual principle of financing social, education and health care; high levels of corruption in education and health care; ever-increasing unemployment; the emergence of disadvantaged, low-income families; the transformation and destruction of marital and family relations; social orphanhood; and migration processes. Program-targeted mechanisms have been identified to level out the threat of shadow economic activity in order to ensure socio-demographic security. The necessity of creating a socially oriented system of management has been emphasized, which will make it possible to reorient the economy towards the development of human capital through the implementation of basic and specific directions of economic policy

Key Words

shadow economy, a threat, security, socio-demographic security, depopulation, качество жизни, уровень жизни, corruption, human capital