Material Support of Self-employment for the Unemployed: Algorithm and Aspects of Law Enforcement

Abstract

Since the development of market economy in Russia, the issues of promoting employment for citizens have been especially topical. State policy to promote employment aims the development of labour resources, increasing mobility, protection of national labour market, ensuring employment and preventing unemployment. The state policy is implemented by carrying out special events promoting the increase in the number of employed citizens. One of the key directions of the state policy is a significant role of the RF subjects in regulating the labour market by assigning a share in federal authorities as to employment, allocation of subsidies from the federal budget on joint financing regional programs to decrease the tension on employment market in a particular RF subject. Within the regional programs RF subjects may take additional measures in the sphere of employing citizens and protecting from unemployment as well as supporting citizens socially to relieve the tension on the employment market. A measure promoting to reliving such tension is promoting little business and self-employment. This measure is performed by providing subsidies to start up a business within regional special-purpose programs. The paper attempts to examine legal aspects of performing material support and self-employment of citizens and some details in law-enforcement practice. The legal evaluation and system analysis show doubts in terms of the efficiency of such a support in modern economic circumstances and providing a gratuitous subsidy on entrepreneurship is erroneous. However, the author considers this question open for discussion.