Evaluating the Extent and Nature of the Informalization of Employment Relations in South-East Europe
European Journal of Industrial Relations Vol. 19, No. 2, pp. 91–107, 2013
17 Pages Posted: 23 Dec 2015
Date Written: 2013
The analysis of employment relations needs to include work in the informal economy. For this purpose, we propose a ‘degrees of informalization’ framework that evaluates the proportion of employment relations infused with informality and the nature of this permeation. We apply this framework to South-East Europe, using evidence from a 2007 Eurobarometer survey. Informality is extensive, largely in the form of under-declared formal waged employment, although significant variations exist across countries. There is a strong correlation between capitalist societies with higher levels of labour market intervention, social protection, redistribution via social transfers and equality, and lower levels of informality.
Keywords: Bulgaria, Cyprus, dual economies, employment relations, Greece, informal economy, Romania, Slovenia, South-East Europe
JEL Classification: H26, J46, J48, K34, K42, O17
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