Journal
УКР   ENG
Socio-Economic Problems
of the Modern Period of Ukraine
   



Collection SEPSPU -- sep2024.03.038

UDC 331.5:336.2; JEL J21, J23, H71
Storonyanska, I. Z., & Storonyanska, I. Z. (2024). Tin'ova zaynyatist' v umovakh viyny: osnovni chynnyky ta mozhlyvosti yikh nivelyuvannya [Shadow employment in times of war: main factors and possibilities of their elimination]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 167 (3) (pp. 38-45). DOI: https://doi.org/10.36818/2071-4653-2024-3-6 [in Ukrainian].
Sources: 18

Authors



Storonyanska Iryna Zenoviyivna

Doctor of Economics, Professor

Deputy Director for Scientific Work, Head of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: istoron.ird@gmail.com, istoron@i.ua, (032)270-7043

Webpages:



Benovska Liliya Yaroslavivna

Ph.D. of Economics, Senior Researcher

Senior Researcher, Scientific Secretary of the unit of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: lbenovska11@gmail.com

Webpages:



Vovk Rostyslav Orestovych

Postgraduate of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: rost.vovk@ukr.net

Webpages:

Resume

If the attempt to avoid taxation was the main reason for shadow employment in the country before the war, mobilization became a pretext for official employment due to the full-scale invasion, leading to the destabilization of the labor market. The purpose of the article is to study the main factors of the functioning of shadow employment in the conditions of the unfolding of the full-scale Russian-Ukrainian war and to determine possible ways of their elimination. A systematic methodical approach in combination with methods of statistical research was used in the process of carrying out scientific research to realize its goal. The article analyzes the trends in the labor market in wartime conditions and reveals that the ratio of vacancies and resumes has reached a critical level - one to one, which indicates an acute shortage of personnel. The authors tested and confirmed the hypothesis that the attempt to avoid mobilization is the main reason for shadow employment. For this purpose, the data on the number of created individual entrepreneurs and concluded civil law contracts were analyzed by gender. The influence of the tax burden and shadow employment is examined, in particular, foreign experience and innovations of the draft Law on Amendments to the Tax Code of Ukraine regarding the peculiarities of taxation during the period of martial law are analyzed. Possible ways of reducing the risks of shadow employment are identified, namely: filling the budget through revision of the system of collecting and administering personal income tax (at the taxpayer’s place of residence) and transferring the powers to administer local taxes and fees to local governments. The possibilities and problems of the transition to the system of personal income tax deduction based on the taxpayer’s place of residence are analyzed. The transition process is slowed down by the need to attract additional financial resources, the need to establish interdepartmental coordination, and discrepancies between the actual and officially registered place of residence.

Keywords:

shadow employment, budget revenues, mobilization, business, taxes

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