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dc.contributor.authorHazans, Mihailsen_US
dc.date.accessioned2011-10-12en_US
dc.date.accessioned2011-11-23T11:43:37Z-
dc.date.available2011-11-23T11:43:37Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201108092997en_US
dc.identifier.urihttp://hdl.handle.net/10419/52083-
dc.description.abstractEuropean Social Survey data on 30 countries, covering years 2004-2009, are used to look into joint institutional [and other macro] determinants of the rates of dependent employment without a contract, informal self-employment, and unemployment (secondary jobs are not accounted for). Consistently with theoretical predictions, quality of business environment has a significant negative impact on prevalence of both types of informal employment. The share of non-contracted employees is negatively affected by perceived quality of public services and is positively related to economic growth. GDP per capita has a positive impact on informality in Europe at large and within Eastern and Southern Europe. Other things equal, the share of non-contracted employees in the labor force across all European countries increases with the minimum-to-average wage ratio, with union density, with the share of first and second generation immigrants, and with income inequality, but falls with stricter employment protection legislation (EPL) and higher tax wedge on labor. Thus it appears that in Europe at large, labor cost effects of EPL and taxes are weaker than their impact via perceptions of job security and law enforcement, along with tax morale and the income effect. Yet the EPL effect on informality is positive (i.e., cost-related) when either Eastern and Southern Europe or Western and Northern Europe are considered separately. Furthermore, within Western and Northern Europe, the minimum wage effect is negative, whilst within Eastern and Southern Europe, the union effect is negative. Various panel data methods are used to confirm the robustness of the results.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5872en_US
dc.subject.jelJ08en_US
dc.subject.jelJ21en_US
dc.subject.jelJ51en_US
dc.subject.jelJ61en_US
dc.subject.jelK31en_US
dc.subject.ddc330en_US
dc.subject.keywordlabor market institutionsen_US
dc.subject.keywordinformal employmenten_US
dc.subject.keywordimmigrantsen_US
dc.subject.keywordethnic minoritiesen_US
dc.titleWhat explains prevalence of informal employment in European countries: The role of labor institutions, governance, immigrants, and growthen_US
dc.typeWorking Paperen_US
dc.identifier.ppn669719188en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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