Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173670
Authors: 
Elek, Péter
Köllő, János
Year of Publication: 
2016
Series/Report no.: 
Budapest Working Papers on the Labour Market BWP - 2016/5
Abstract: 
We study the undeclared work patterns of Hungarian employees in relatively stable jobs, using a panel dataset that matches individual-level self-reported Labour Force Survey (LFS) data with administrative data from the Pension Directorate for 2001-2006. We estimate the determinants of undeclared work using Heckman-type random-effects panel probit models, and develop a two-regime model to separate permanent and transitory undeclared work, where the latter follows a Markov chain. We find that about 6 per cent of workers went permanently unreported for six consecutive years, and a further 3-4 per cent were transitorily unreported in any given year. By simulating the permanent and transitory components of undeclared work, we examine the implications for health and pension eligibility.
Subjects: 
undeclared work
labour input method
matched administrative-survey data
random-effects panel probit model with endogenous selection
Markov chain
JEL: 
C23
C25
H26
J46
ISBN: 
978-615-5594-45-8
Document Type: 
Working Paper

Files in This Item:
File
Size
738.17 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.