Andrey Shevchuk , HSE, associate professor Denis Strebkov , HSE, associate professor

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Andrey Shevchuk, HSE, associate professor Denis Strebkov, HSE, associate professor New forms of self- employment in Russia: Remote work patterns and E-markets This study was carried out within “The National Research University Higher School of Economics’ Academic Fund Program in 2010-2012, research grant No. 10-01-0129. XIII April international Academic Conference on Economic and Social Development (April 5, 2012)

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Andrey Shevchuk , HSE, associate professor Denis Strebkov , HSE, associate professor. New forms of self-employment in Russia: Remote work patterns and E-markets. XIII April international Academic Conference on Economic and Social Development ( April 5, 2012 ). - PowerPoint PPT Presentation

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Page 1: Andrey Shevchuk , HSE, associate professor Denis  Strebkov ,  HSE, associate professor

Andrey Shevchuk, HSE, associate professorDenis Strebkov, HSE, associate professor

New forms of self-employment in

Russia:Remote work

patterns and E-markets

This study was carried out within “The National Research University Higher School of Economics’ Academic Fund Program in 2010-2012, research grant No. 10-01-0129.

XIII April international Academic Conference on Economic and Social

Development (April 5, 2012)

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Self-Employment in the New Economy

• Service sector

• Knowledge-intensive and Creative industries

• Remote work or Telework (using ICT)

• Global E-markets

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E-lance economy

“The fundamental unit of such an economy is not the corporation but the individual. Tasks aren’t assigned and controlled through a stable chain of management but rather are carried out autonomously by independent contractors. These electronically connected freelancers – e-lancers – join together into fluid and temporary networks to produce and sell goods and services. When the job is done – after a day, a month, a year – the network dissolves, and its members become independent agents again, circulating through the economy, seeking the next assignment”.

Thomas W. Malone and Robert J. LaubacherThe Dawn of the E-Lance Economy (1998)

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Online Marketplaces for Freelancers

Name Year of foundation

Working language

Registered users

Freelancer.com 2004 Eng. 3,000,000

oDesk.com 2003 Eng. 2,000,000

Elance.com 1999 Eng. 1,300,000

Guru.com 2000 Eng. 1,000,000

Free-lance.ru 2005 Rus. 1,000,000

vWorker.com 2001 Eng. 500,000

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New phenomenon for Russia

• Self-employment in the USSR was illegal

• Information and Communication Technology (ICT) lag

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Self-employment in Russia

Type Russia EU

Own account workers(without employees) 5.8 10.5

All self-employed(including employers

and contributing family workers)

7.3 16.9

Source: ILO

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Online Marketplaces for Freelancers

Name Russia UK USA

Internet penetration rate(% of population) 43 % 84 % 78 %

Use the Internet for their work

(% of the labor force)23 % 77 % 62 %

Source: FOM, RLMS-HSE, E-skills.com, Pew Research Center

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Free-lance.Ru: Registered Users Growth

Am

ount of users (in thousands)

0

100

200

300

400

500

600

700

800

900

1000

01.01.05 01.01.06 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12

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Data Overview

1. Second Russian Freelance Survey (2011, March), N = 10,943• Future freelancers (2,925)• Active freelancers (7,179) (from Russia – 4,474)• Former freelancers (839)

2. Russian Longitudinal Monitoring Survey – HSE (2010, Oct), N = 21,343 • Russian working population (10,145)

47.5% of general population

• Russian employees using the Internet for their work (2,017)9.5% of general population19.9% of Russian working population

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Questionnaire: about 50 questions

• Demographic and professional profile• Work values and motivation• Employment strategies• Relationships with clients• Satisfaction• Income and well-being• Self-management• Work-life balance

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Gender

60

4041

5953

47

0

10

20

30

40

50

60

70

Male Female

Freelancers Employees using the Internet Working population

%

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Age

19

28

2219

1012

1713

28 30

42

26

11129

0

5

10

15

20

25

30

35

40

45

18-22 23-26 27-30 31-40 41 years +

Freelancers Employees using the Internet Working population

%

Mean: 28.5 35.0 38.3 years old

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Education

3

1521

60

22

30

3

64

2

10

56

3

29

10

10

20

30

40

50

60

70

School (8-9 years) School (10-11years)

University, nodegree (3-4 years)

University (5-6years)

PhD

Freelancers Employees using the Internet Working population

%

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Employment Status

GENUINEFREELANCERS

(29%)

Employees(43%)

Students(13%)

House-wives(6%)

Entre-preneurs

(8%)

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Skills of Freelancers

%

20

28

3

14

10

27

5

9

5

38

0 5 10 15 20 25 30 35 40

Other area

Advertising/marketing/consulting

Translating

Writing/editing

Audio/video

Photography

Engineering and manufacturing

Graphic design, creative arts

Computer programming

Websites

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Work Values

%

Which aspects do you personally think are important in a job?

39

24

35

75

25

39

66

96

10

13

22

32

42

58

74

80

0 10 20 30 40 50 60 70 80 90 100

Generous vacation time

Not too much pressure

A job respected by people in general

Good job security

An opportunity to show initiative

A job in which you feel you can achievesomething

A job that is interesting and creative

Good pay

Freelancers

Working population

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Working Hours

12

2

3

15

71

56

26

17

25

29

3

89

8

18

0% 20% 40% 60% 80% 100%

Freelancers

Employees usingthe Internet

Working population

Up to 20 h 21-35 h 36-45 h 46-60 h More than 60 h

Mean:

51

42

45 hours

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Earnings (average monthly post-tax personal income in USD)

Mean:

1,090

665

480 USD

17

25

47

29

19

10

20

3

143

53

35

0% 20% 40% 60% 80% 100%

Freelancers

Employees usingthe Internet

Working population

Less than $325 $326 to $825 $826 to $1650 More than $1650

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Satisfaction

11

9

9

29

24

24

11

13

20

3

2

641

51

47

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Freelancers

Employees using theInternet

Working population

Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied

All things considered, how satisfied are you with your life as a whole nowadays?

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Conclusion: Electronic Freelancers in Russia

• Young individuals with a higher enterprising spirit and human capital, offering creative and knowledge-intensive services.

• Work longer hours than regular employees and often operate under pressure, but have a higher income, enjoy autonomy at work and are satisfied with their lives.

• “New middle class” and the vanguard of the workforce in terms of the nature of work, ICT-competence and motivation.

• Play an important role in the development of the Internet, e-business, and innovative entrepreneurship.

• But still very narrow and highly specific category of the workforce.

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