Informal Workers across Europe : Evidence from 30 European Countries

The European Social Survey data are used to analyze informal employment in 30 countries, focusing on employees without contracts and on informal self-employed workers (who are distinguished from formal workers). Overall the size of informal employm...

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Main Author: Hazans, Mihails
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213090401
http://hdl.handle.net/10986/3681
id okr-10986-3681
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGE COMPOSITION
ANNUAL LEAVE
AVERAGE UNEMPLOYMENT
DEVELOPMENT ECONOMICS
DISABILITY
DISPLACED WORKERS
DRIVERS
ECONOMIC GROWTH
EDUCATIONAL ATTAINMENT
EMPLOYEE
EMPLOYEE BENEFITS
EMPLOYERS
EMPLOYMENT CONTRACTS
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT RELATIONSHIP
EMPLOYMENT STATUS
FIELD WORK
FIRING
FIRING COSTS
FORMAL LABOR MARKET
GENERAL EQUILIBRIUM
HIGHER EDUCATION
HIRING
HOUSEHOLD INCOME
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
INFORMAL ECONOMY
INFORMAL EMPLOYMENT
INFORMAL SECTOR
JOB CREATION
JOB OFFER
JOB OFFERS
JOB SECURITY
JOBS
LABOR DEMAND
LABOR FORCE
LABOR MARKET
LABOR MARKET FLEXIBILITY
LABOR MARKETS
LABOR REGULATIONS
LABOR SUPPLY
LEGAL STATUS
LITERATURE
LONG-TERM UNEMPLOYMENT
LONGTERM UNEMPLOYMENT
LOW TRUST
MALE EMPLOYEES
MARKET ECONOMY
MINIMUM WAGE
MORALE
MOTIVATION
OCCUPATION
OCCUPATIONS
OLDER WORKERS
OPEN ACCESS
PAPERS
PRESENT VALUE
PRIME AGE
PRIVATE SECTOR
PRIVATE SECTOR EMPLOYEES
PRODUCTION PROCESS
PRODUCTIVITY
PROFESSIONALS
RECRUITMENT
RETIREMENT
SAFETY
SAFETY NET
SALARIED WORKERS
SELF EMPLOYED
SELF EMPLOYMENT
SELF-EMPLOYED ACCOUNT
SERVICE PROVIDERS
SICK LEAVE
SKILLED WORKERS
SMALL BUSINESS
SOCIAL CAPITAL
TEMPORARY EMPLOYMENT
TOTAL EMPLOYMENT
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT EXPERIENCE
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
UNION MEMBERSHIP
UNIVERSITY DEGREES
UNIVERSITY GRADUATES
WAGE EMPLOYMENT
WAGE LEVEL
WAGES
WORK ACTIVITIES
WORK EXPERIENCE
WORK IN PROGRESS
WORK PERMITS
WORKER
WORKERS
WORKING
WORKING CONDITION
WORKING CONDITIONS
WORKING HOURS
WORKING TIME
YOUNG WORKERS
spellingShingle AGE COMPOSITION
ANNUAL LEAVE
AVERAGE UNEMPLOYMENT
DEVELOPMENT ECONOMICS
DISABILITY
DISPLACED WORKERS
DRIVERS
ECONOMIC GROWTH
EDUCATIONAL ATTAINMENT
EMPLOYEE
EMPLOYEE BENEFITS
EMPLOYERS
EMPLOYMENT CONTRACTS
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT RELATIONSHIP
EMPLOYMENT STATUS
FIELD WORK
FIRING
FIRING COSTS
FORMAL LABOR MARKET
GENERAL EQUILIBRIUM
HIGHER EDUCATION
HIRING
HOUSEHOLD INCOME
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
INFORMAL ECONOMY
INFORMAL EMPLOYMENT
INFORMAL SECTOR
JOB CREATION
JOB OFFER
JOB OFFERS
JOB SECURITY
JOBS
LABOR DEMAND
LABOR FORCE
LABOR MARKET
LABOR MARKET FLEXIBILITY
LABOR MARKETS
LABOR REGULATIONS
LABOR SUPPLY
LEGAL STATUS
LITERATURE
LONG-TERM UNEMPLOYMENT
LONGTERM UNEMPLOYMENT
LOW TRUST
MALE EMPLOYEES
MARKET ECONOMY
MINIMUM WAGE
MORALE
MOTIVATION
OCCUPATION
OCCUPATIONS
OLDER WORKERS
OPEN ACCESS
PAPERS
PRESENT VALUE
PRIME AGE
PRIVATE SECTOR
PRIVATE SECTOR EMPLOYEES
PRODUCTION PROCESS
PRODUCTIVITY
PROFESSIONALS
RECRUITMENT
RETIREMENT
SAFETY
SAFETY NET
SALARIED WORKERS
SELF EMPLOYED
SELF EMPLOYMENT
SELF-EMPLOYED ACCOUNT
SERVICE PROVIDERS
SICK LEAVE
SKILLED WORKERS
SMALL BUSINESS
SOCIAL CAPITAL
TEMPORARY EMPLOYMENT
TOTAL EMPLOYMENT
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT EXPERIENCE
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
UNION MEMBERSHIP
UNIVERSITY DEGREES
UNIVERSITY GRADUATES
WAGE EMPLOYMENT
WAGE LEVEL
WAGES
WORK ACTIVITIES
WORK EXPERIENCE
WORK IN PROGRESS
WORK PERMITS
WORKER
WORKERS
WORKING
WORKING CONDITION
WORKING CONDITIONS
WORKING HOURS
WORKING TIME
YOUNG WORKERS
Hazans, Mihails
Informal Workers across Europe : Evidence from 30 European Countries
geographic_facet Europe and Central Asia
Europe and Central Asia
relation Policy Research working paper ; no. WPS 5912
description The European Social Survey data are used to analyze informal employment in 30 countries, focusing on employees without contracts and on informal self-employed workers (who are distinguished from formal workers). Overall the size of informal employment decreases from South to West to East to North. However, working without a contract is more prevalent in Eastern Europe than in the West, except for Ireland, the United Kingdom, and Austria. Between 2004 and 2009, no cases were found when unemployment and dependent informality rates in a country went up together, suggesting that working without a contract is pro-cyclical in Europe. The dependent informality rate is inversely related to skills (measured by either schooling or occupation). Both in Southern and in Western Europe, the highest dependent informality rate is found among immigrants from Central and Eastern Europe and the Former Soviet Union, while in Eastern Europe this group is second after minorities without immigrant background. In the Southern and part of Western Europe, immigrants not covered by European Union free mobility provisions are much more likely to work without a contract than otherwise similar natives. The paper provides evidence that exclusion and discrimination plays an important role in pushing employees into informality, while this seems not to be the case for informal self-employed workers. Both on average and after controlling for a rich set of individual characteristics, informal employees in all parts of Europe are having the largest financial difficulties among all categories of the employed population (yet they fare much better than the unemployed and discouraged), while informal self-employed workers are at least as well off as formal employees. Finally, there is a negative and significant effect of individual-level satisfaction with the national government on the propensity to work without a contract in Eastern Europe, as well as in Western Europe.
format Publications & Research :: Policy Research Working Paper
author Hazans, Mihails
author_facet Hazans, Mihails
author_sort Hazans, Mihails
title Informal Workers across Europe : Evidence from 30 European Countries
title_short Informal Workers across Europe : Evidence from 30 European Countries
title_full Informal Workers across Europe : Evidence from 30 European Countries
title_fullStr Informal Workers across Europe : Evidence from 30 European Countries
title_full_unstemmed Informal Workers across Europe : Evidence from 30 European Countries
title_sort informal workers across europe : evidence from 30 european countries
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213090401
http://hdl.handle.net/10986/3681
_version_ 1764387784460599296
spelling okr-10986-36812021-04-23T14:02:11Z Informal Workers across Europe : Evidence from 30 European Countries Hazans, Mihails AGE COMPOSITION ANNUAL LEAVE AVERAGE UNEMPLOYMENT DEVELOPMENT ECONOMICS DISABILITY DISPLACED WORKERS DRIVERS ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYEE BENEFITS EMPLOYERS EMPLOYMENT CONTRACTS EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP EMPLOYMENT STATUS FIELD WORK FIRING FIRING COSTS FORMAL LABOR MARKET GENERAL EQUILIBRIUM HIGHER EDUCATION HIRING HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR JOB CREATION JOB OFFER JOB OFFERS JOB SECURITY JOBS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LEGAL STATUS LITERATURE LONG-TERM UNEMPLOYMENT LONGTERM UNEMPLOYMENT LOW TRUST MALE EMPLOYEES MARKET ECONOMY MINIMUM WAGE MORALE MOTIVATION OCCUPATION OCCUPATIONS OLDER WORKERS OPEN ACCESS PAPERS PRESENT VALUE PRIME AGE PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PRODUCTION PROCESS PRODUCTIVITY PROFESSIONALS RECRUITMENT RETIREMENT SAFETY SAFETY NET SALARIED WORKERS SELF EMPLOYED SELF EMPLOYMENT SELF-EMPLOYED ACCOUNT SERVICE PROVIDERS SICK LEAVE SKILLED WORKERS SMALL BUSINESS SOCIAL CAPITAL TEMPORARY EMPLOYMENT TOTAL EMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT EXPERIENCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNION MEMBERSHIP UNIVERSITY DEGREES UNIVERSITY GRADUATES WAGE EMPLOYMENT WAGE LEVEL WAGES WORK ACTIVITIES WORK EXPERIENCE WORK IN PROGRESS WORK PERMITS WORKER WORKERS WORKING WORKING CONDITION WORKING CONDITIONS WORKING HOURS WORKING TIME YOUNG WORKERS The European Social Survey data are used to analyze informal employment in 30 countries, focusing on employees without contracts and on informal self-employed workers (who are distinguished from formal workers). Overall the size of informal employment decreases from South to West to East to North. However, working without a contract is more prevalent in Eastern Europe than in the West, except for Ireland, the United Kingdom, and Austria. Between 2004 and 2009, no cases were found when unemployment and dependent informality rates in a country went up together, suggesting that working without a contract is pro-cyclical in Europe. The dependent informality rate is inversely related to skills (measured by either schooling or occupation). Both in Southern and in Western Europe, the highest dependent informality rate is found among immigrants from Central and Eastern Europe and the Former Soviet Union, while in Eastern Europe this group is second after minorities without immigrant background. In the Southern and part of Western Europe, immigrants not covered by European Union free mobility provisions are much more likely to work without a contract than otherwise similar natives. The paper provides evidence that exclusion and discrimination plays an important role in pushing employees into informality, while this seems not to be the case for informal self-employed workers. Both on average and after controlling for a rich set of individual characteristics, informal employees in all parts of Europe are having the largest financial difficulties among all categories of the employed population (yet they fare much better than the unemployed and discouraged), while informal self-employed workers are at least as well off as formal employees. Finally, there is a negative and significant effect of individual-level satisfaction with the national government on the propensity to work without a contract in Eastern Europe, as well as in Western Europe. 2012-03-19T18:06:45Z 2012-03-19T18:06:45Z 2011-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213090401 http://hdl.handle.net/10986/3681 English Policy Research working paper ; no. WPS 5912 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia