Abstract

"Two billion workers - representing 61.2 per cent of the world's employed population - are in informal employment.
The third edition of this work provides, for the first time, comparable estimates on the size of the informal economy and a statistical profile of informality in all its diversity at the global and regional levels. A common set of criteria to measure informal work has been applied to more than 100 countries, both developed and developing.
The publication is particularly timely given the momentum created by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204) and the Sustainable Development Goals, which include a specific global indicator on informal employment (8.3.1)." (Author's abstract, IAB-Doku) ((en))

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Afonso, Óscar & Rui Sarabanda (2017): The impact of the informal economy on R&D, wage inequality and economic growth. In: Applied Economics Letters, Jg. 24, H. 1, S. 39-44. DOI:10.1080/13504851.2016.1158913

Abstract

"We extend the existing research and development (R&D) growth literature by focusing on the short - medium - long run effects of the informal sector on R&D intensity, wage inequality and economic growth, and by considering 18 OECD countries between 1990 and 2008. We show that: the steady state is unique and stable; the share of informal economy (IE) in production affects negatively R&D intensity and wage equality; Nordic countries have the lowest share of IE in production, while Mediterranean countries have the highest share of IE, wage inequality and R&D intensity but R&D spillovers are lower." (Author's abstract, IAB-Doku) ((en))

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Afonso, Óscar & Francisco Almeida (2017): The nonobserved economy in the European Union. In: Applied Economics Letters, Jg. 24, H. 1, S. 14-18. DOI:10.1080/13504851.2016.1158908

Abstract

"To better understand the share of the nonobserved economy (NOE) in the European Union, especially on the PIIGS, we estimate, through the multiple indicators multiple causes model, the path between 1980 and 2013. The model includes (i) the tax burden (disaggregated into direct and indirect taxes), a proxy of regulation burden, the unemployment rate and self-employment as causes of the NOE economy; (ii) the GDP and the labour force participation ratio as indicators of the NOE economy. In particular, the estimated weight of NOE as a percentage of official GDP was always higher in the PIIGS group." (Author's abstract, IAB-Doku) ((en))

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Di Porto, Edoardo, Leandro Elia & Cristina Tealdi (2017): Informal work in a flexible labour market. In: Oxford economic papers, Jg. 69, H. 1, S. 143-164. DOI:10.1093/oep/gpw010

Abstract

"Informal employment is a pervasive and persistent feature of most developing and developed economies. Labour taxation and labour market regulations are deemed two major causes for operating in the informal sector. Using data from France, Italy, and Spain, we analyse gross job flows and gross worker flows in the formal and informal sectors in the presence of lenient employment protection legislation, and investigate the way traditional policy interventions may favour transitions from one sector to the other. We show that optimal outcomes in terms of reduction and formalisation of informal jobs across the three countries examined are achieved with the combination of lower payroll taxes for permanent contracts and higher inspection rate for firms operating in the informal sector. Coupling lower firing costs with more frequent labour inspections also reduces informality, but this comes at the cost of an increased ratio of temporary to total employment." (Author's abstract, IAB-Doku) ((en))

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Enste, Dominik H. (2017): Schwarzarbeit und Schattenwirtschaft. Argumente und Fakten zur nicht angemeldeten Erwerbstätigkeit in Deutschland und Europa. (IW-Report / Institut der Deutschen Wirtschaft Köln 2017,09), Köln, 30 S.

Abstract

"Über Schwarzarbeit und Schattenwirtschaft wird vor allem in Zeiten von wirtschaftlichen Krisen gesprochen. Sie dienen dann als eine Art Puffer und gleichen die Härten einer Rezession gerade für Personen mit geringeren oder mittleren Einkommen aus. Gerade in Südeuropa ist Schattenwirtschaft weitverbreitet." (Autorenreferat, IAB-Doku)

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Feld, Lars P. & Friedrich Schneider (2017): Reply to Gebhard Kirchgässner. In: German economic review, Jg. 18, H. 1, S. 112-117. DOI:10.1111/geer.12097

Abstract

"In this reply to Kirchgässner, four issues are addressed: (1) the extent of double counting in attempts to reconcile estimates of the shadow economy based on the survey method and estimates based on the MIMIC (cum currency demand) approach, (2) advantages and disadvantages of the survey method, (3) of macro methods like the MIMIC approach and (4) the potential role of plausibility checks of estimates from the MIMIC approach with the survey method." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Goel, Rajeev K. & James W. Saunoris (2017): Unemployment and international shadow economy. Gender differences. In: Applied Economics, Jg. 49, H. 58, S. 5828-5840. DOI:10.1080/00036846.2017.1343452

Abstract

"Adding to the body of research on cross-country determinants of the informal economy, this article studies how unemployment differences across gender drive the propensities to work in the informal sector. Results, accounting for possible simultaneity between unemployment and the shadow economy, show that unemployed males, rather than unemployed females, were more likely to operate underground. These findings about greater male propensities are generally robust to alternative considerations." (Author's abstract, IAB-Doku) ((en))

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Kirchgässner, Gebhard (2017): On estimating the size of the shadow economy. In: German economic review, Jg. 18, H. 1, S. 99-111. DOI:10.1111/geer.12094

Abstract

"As long as it is employed cautiously enough, the model approach is a useful tool to estimate simultaneously the size and the development of the shadow economy in several countries. However, a second method is necessary to calibrate the model. The currency demand approach can lead to highly implausible results; the size of the shadow economy might be largely overestimated. An alternative is the survey method. For real tests of whether a variable has an impact, procedures are necessary that do not use the same variables as those used to construct the indicator. Thus, to make progress in analysing the shadow economy, the model approach has a role to play, but it has to be complemented by other methods employing different data. The currency demand approach cannot be used as long as it employs the same variables for its constructions." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Mauleón, I. & J. Sardà (2017): Unemployment and the shadow economy. In: Applied Economics, Jg. 49, H. 37, S. 3729-3740. DOI:10.1080/00036846.2016.1267844

Abstract

"Current research links the shadow economy (SE) and the unemployment rate either indirectly or by means of a preliminary estimate. This article establishes and empirically implements a methodology for estimating the size of the SE as a direct function of the tax and unemployment rates. This link is found to be extremely relevant in countries with high unemployment rates (such as Greece and Spain) and less relevant in countries with moderate unemployment rates (such as Germany and Italy). Unemployment's contribution to the SE is shown to be significant, especially in the years following the economic downturn of 2008. The calculation of the variance and distribution of these estimates is another significant contribution. The common criticism that SE estimates are unreliable is addressed by calculating the variance and the distribution of the estimates, and the large size of the SE in Greece and Spain is once again confirmed." (Author's abstract, IAB-Doku) ((en))

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Pfau-Effinger, Birgit (2017): Informal employment in the poor European periphery. In: The international journal of sociology and social policy, Jg. 37, H. 7/8, S. 387-399. DOI:10.1108/IJSSP-07-2016-0080

Abstract

"Purpose
During the transition from socialist to post-socialist regimes, many Central and Eastern Europe societies have developed a broad sector of informal work. This development has caused substantial economic and social problems. The paper aims to discuss these issues.
Design/methodology/approach
This paper aims to answer two questions regarding European countries with a relatively weak economy and welfare state: what are the differences in the social characteristics between workers in formal and informal employment? And how might they be explained? According to the main assumption, a key reason why people work in undeclared employment in such countries is that they are in particularly vulnerable positions in the labour market. This paper uses the example of Moldova. The empirical study is based on a unique survey data set from the National Statistical Office of Moldova covering formal and informal employment.
Findings
The findings show that, in informal employment, workers in rural areas, workers with a low level of education, young workers and older workers - in the final years of their careers and after the age of retirement - are over-represented. It seems that a significant reason why these workers are often engaged in informal employment is the lack of alternatives in the labour market, particularly in rural areas, compounded by limited social benefits from unemployment benefits and pensions.
Originality/value
Research about social differences between workers in formal and informal employment in the countries of the European periphery is rare. This paper makes a new contribution to the theoretical debate and research regarding work in informal employment" (Author's abstract, © Emerald Group) ((en))

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Schneider, Friedrich (2017): Implausible large differences in the sizes of underground economies in highly developed European countries? A comparison of different estimation methods. (CESifo working paper 6522), München, 25 S.

Abstract

"In this paper, first, the MIMIC estimation method is described and criticized and due to a double counting problem a correction is suggested. Second, the measurement methods used for National Accounts Statistics - the discrepancy method and two new micro survey methods - are described and a third, a micro method, using a combination of company manager surveys and their knowledge to calibrate the size of the shadow economy in firms, is presented, too. Third, a detailed comparison of the four micro estimation methods with the MIMIC and the corrected MIMIC method are presented. One major result is that the corrected MIMIC method, especially, comes quite close to various types of lately developed micro survey methods." (Author's abstract, IAB-Doku) ((en))

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Shapland, Joanna & Jason Heyes (2017): How close are formal and informal work? In: The international journal of sociology and social policy, Jg. 37, H. 7/8, S. 374-386. DOI:10.1108/IJSSP-06-2016-0071

Abstract

"Purpose
Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating formal economy working conditions separately from research on the informal economy). The question is whether the means of work and benefits to the worker for formal and informal work are now as different as the former images of formal and informal economy work imply under a 'jobs-for-life' economy. The purpose of this paper is to consider whether the current aim of government regulation of the informal economy - to formalise it - is actually of benefit to workers, as might be supposed.
Design/methodology/approach
This paper considers recent research findings on the formal and informal economy, using official government statistics for the UK and more detailed European studies on the informal economy.
Findings
This paper argues that formal employment in the UK is becoming more casualised, with less associated benefits to employees. Though it is still of benefit to the state to formalise informal work (to increase tax take), some of the links between formalisation and a good working environment for workers are being broken, which may lead to the informal economy becoming more popular and requiring different priorities in its regulation.
Originality/value
This paper argues that we need to change our assumptions and image of work in the formal economy, compared to that in the informal economy." (Author's abstract, © Emerald Group) ((en))

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Slack, Tim, Leif Cope, Michael R. Jensen & Ann R. Tickamyer (2017): Social embeddedness, formal labor supply, and participation in informal work. In: The international journal of sociology and social policy, Jg. 37, H. 3/4, S. 248-264. DOI:10.1108/IJSSP-02-2016-0022

Abstract

"Purpose: The purpose of this paper is to analyze data from the first-ever national-level study of informal work in the USA to test two prominent points of focus in the literature: how participation in informal work relates to social embeddedness and formal labor supply. This paper also provides a comparative test of the factors associated with exchange-based informal work (i.e. money/barter) vs self-provisioning activities.
Design/methodology/approach: The study draws on data from a national-level household telephone survey and uses descriptive statistics and logistic regression models.
Findings: The data show that participation in the informal economy is widespread in the USA. Consistent with theory, it is found that measures of social embeddedness and formal labor supply are much more salient for predicting participation in informal work for money/barter compared to self-provisioning.
Originality/value: Drawing on unique data from the first national-level household survey of informal work in the USA, this study provides generalizable support for the contention that the informal sector stands as a persistent structural feature in modern society. The results build on the wealth of information produced by qualitative case studies examining informal economic activity as well as a smaller number of regionally targeted surveys to provide important theoretical insights." (Author's abstract, © Emerald Group) ((en))

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Tangermann, Julian & Janne Grote (2017): Illegale Beschäftigung von Drittstaatsangehörigen in Deutschland. Studie der deutschen nationalen Kontaktstelle für das Europäische Migrationsnetzwerk (EMN). (Bundesamt für Migration und Flüchtlinge. Working paper 74), Nürnberg, 72 S.

Abstract

"In der Diskussion über illegale Beschäftigung standen in der jüngeren Vergangenheit immer wieder sowohl deutsche als auch ausländische Beschäftigte im Fokus. Jüngst gerieten Geflüchtete ins Rampenlicht, obwohl es keine verlässlichen Erkenntnisse darüber gibt, dass sie überproportional häufig einer illegalen Beschäftigung nachgehen. Auch in Bezug zur illegalen Beschäftigung von Drittstaatsangehörigen im Allgemeinen gibt es nur wenige verlässliche statistische Kennzahlen. Die vorhandenen Daten werden in der Studie diskutiert. Darüber hinaus werden die rechtlichen Rahmenbedingungen, die zentralen Akteure zur Kontrolle und Präventionsarbeit sowie die Folgen für Arbeitgeberinnen und Arbeitgeber und für illegal beschäftigte Drittstaatsangehörige selbst beschrieben." (Autorenreferat, IAB-Doku)

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Williams, Colin C., Predrag Bejakovic, Davor Mikulic, Josip Franic, Abbi Kedir & Ioana A. Horodnic (2017): An evaluation of the scale of undeclared work in the European Union and its structural determinants. Estimates using the Labour Input Method. Brüssel, 29 S. DOI:10.2767/98169

Abstract

"How big is undeclared work in the EU? According to this study, more than 11% of work in the private sector is 'under the table'. However, there are big differences between EU countries, with Poland, Romania and Lithuania having the highest levels of undeclared work, while Germany and the Netherlands have low shares. The study analyses the reasons for this and examines the types of employments where undeclared work is more frequent." (Author's abstract, IAB-Doku) ((en))

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Williams, Colin C. & Ioana A. Horodnic (2017): Evaluating the relationship between social exclusion and participation in the informal sector in the European Union. In: International journal of manpower, Jg. 38, H. 3, S. 489-503. DOI:10.1108/IJM-10-2015-0179

Abstract

"Purpose: The purpose of this paper is to evaluate who engages in informal work. The intention in doing so is to analyse whether important causal factors of social exclusion such as age, education, gender and employment status influence participation in informal work in the European Union.
Design/methodology/approach: To do this, a 2013 Eurobarometer survey of who participates in undeclared work in 28 European member states is reported.
Findings: Using multilevel mixed-effects logistic regression analysis, the finding is that although some marginalised groups (the unemployed, those having difficulties paying their household bills, the working class and younger age groups) are significantly more likely to participate in the informal sector, others are not (those with less formal education and living in rural areas) and yet others (women and people in deprived European regions) are significantly less likely to participate.
Research limitations/implications: The outcome is a call for a nuanced and variegated understanding of the relationship between participation in the informal sector and social exclusion.
Practical implications: These results display the specific populations that need targeting when seeking to tackle informal work, revealing for example that the current the allocation of European funds for tackling informal work in poorer EU regions is mistaken, but that the targeting of the unemployed is not and current policy initiatives such as smoothing the transition from unemployment to self-employment worthwhile.
Originality/value: This is the first extensive evaluation of the relationship between participation in the informal sector and social exclusion at the level of the European Union" (Author's abstract, © Emerald Group) ((en))

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(2017): Finanzkontrolle Schwarzarbeit - Kontrolle von Mindestlöhnen 2016. Antwort der Bundesregierung auf die Kleine Anfrage der Abgeordneten und der Fraktion BÜNDNIS 90/DIE GRÜNEN (Drucksache 18/11304). (Verhandlungen des Deutschen Bundestages. Drucksachen 18/11475 (10.03.2017)), 20 S.

Abstract

Die Bundesregierung antwortet auf die Anfrage der Fraktion BÜNDNIS 90/DIE GRÜNEN zur Kontrolle von Mindestlöhnen durch die Finanzkontrolle Schwarzarbeit im Jahr 2016. (IAB)

Abstract

"Der nun vom Bundeskabinett beschlossene Dreizehnte Bericht zeigt auf, dass nahezu alle, insbesondere lohnintensive Wirtschaftszweige von Schwarzarbeit und illegaler Beschäftigung betroffen sind. Die Schwerpunkte liegen dabei unter anderem in den im Schwarzarbeitsbekämpfungsgesetz und im Vierten Sozialgesetzbuch genannten Branchen, wie beispielsweise das Bau-, das Gaststätten- und Beherbergungs-, das Personenbeförderungs-, das Speditions-, Transport- und Logistik-, das Gebäudereinigungsgewerbe sowie die Fleischwirtschaft.
Der Bericht berücksichtigt die Stellungnahmen der Länder, der betroffenen Bundesressorts, der Generalzolldirektion sowie weiterer Behörden, Interessenvertretungen und Gewerkschaften und stellt die Entwicklung im Zeitraum von 2013 bis 2016 dar." (Autorenreferat, IAB-Doku)

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Di Caro, Paolo & Giuseppe Nicotra (2016): Short, long and spatial dynamics of informal employment. In: Regional Studies. Journal of the Regional Studies Association, Jg. 50, H. 11, S. 1804-1818. DOI:10.1080/00343404.2015.1072274

Abstract

"In diesem Beitrag analysieren wir regionale Schattenarbeitsmärkte. Wir führen überregionale Migrationsströme in ein stochastisches Zweisektorenmodell ein, das zur Untersuchung der Auswirkungen der regionalen Wechselwirkungen auf die Informalität genutzt wird. Aus den empirischen Ergebnissen geht hervor, dass informelle Tätigkeiten in italienischen Regionen durch die ineffiziente Bereitstellung öffentlicher Güter sowie durch hohe Steuern bedingt sind. Regionale Verbindungen werden als signifikant befunden. Wir untersuchen ortsspezifische Reaktionen der informellen Beschäftigung auf nationale Schocks in der offiziellen Wirtschaft und stellen fest, dass der informelle Sektor formelle Tätigkeiten ergänzen oder ersetzen kann. Anschließend erörtern wir die zusammengefassten Ergebnisse und politischen Schlussfolgerungen." (Autorenreferat, IAB-Doku)

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Flórez, Luz Adriana & Francisco Perales (2016): Labour protection and informal work. A cross-national analysis of european countries, 2004-2012. In: International Labour Review, Jg. 155, H. 4, S. 623-650. DOI:10.1111/j.1564-913X.2015.00049.x

Abstract

"Informal work, defined as work performed without a formal contract, lowers productivity, reduces tax revenue and hampers economic growth. Reducing informal work is a policy objective in developed and developing countries alike. Yet, particularly since the onset of the global financial crisis in 2008, most socio-economic policy reforms across Europe have reduced the generosity of unemployment benefit schemes and deregulated employment protection. The authors argue that, while such reforms may have contributed to reducing unemployment, they might also have increased the incidence of informal work. Using European Social Survey data for 2004 - 12, they find that labour protection is effective in reducing informal wage employment." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))