Importance The article introduces the concept of 'economic inactivity' referring to the population's behavior in the labor market. The article also determines the reasons and substantiates the need for reforms of the Russian economy. The underlying information of the research comprises the data of selective population surveys about employment and unemployment in Russia and federal districts, as well as regions of the Volga Federal District. The author selects the period of the analysis considering the data comparability. Objectives The author examines the regions of the Volga Federal District to review the trends of the population's economic inactivity, and make the structural and dynamic comparison of the number of the economically inactive population by gender, type of localities and category of the population size. Methodology The author identifies the principle factor that determines the economic inactivity level in the regions' labor market from 2010 through 2013, according to the panel data per region and the analysis of internal relations. The detailed analysis of the population's economic inactivity in the labor market represents the case study of the Republic of Mordovia. Results The combination of the descriptive analysis and the general quantitative indicators collected enables the researcher to provide a qualitative view of the structural shifts in the population's economic inactivity within the region and make conclusions about the existing relations and mutually dependent trends reflecting the origination of such a behavior in the region's labor market. Conclusions and Relevance The results of the research are relevant in the context of identifying the substance and regional specificity of the household institutionalization process to expand the underlying information needed to outline the economic and social policy in the region.
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