scholarly journals Evaluating the internal dualism of the informal sector: evidence from the European Union

2017 ◽  
Vol 44 (4) ◽  
pp. 605-616
Author(s):  
Colin C. Williams ◽  
Ioana Alexandra Horodnic ◽  
Jan Windebank

Purpose To transcend the current debates about whether participation in the informal sector is a result of informal workers “exclusion” or their voluntary “exit” from the formal sector, the purpose of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and exclusion-driven “lower-tier” of informal workers. Design/methodology/approach To do this, data from a 2013 Eurobarometer survey involving 27,563 face-to-face interviews across the European Union is reported. Findings The finding is that in the European Union, there is a dual informal labour market with those participating in the informal sector due to their exclusion from the formal sector being half the number of those doing so to voluntarily exit the formal sector. Using a logistic regression analysis, the exclusion-driven “lower tier” is identified as significantly more likely to be populated by the unemployed and those living in East-Central Europe and the exit-driven “upper tier” by those with few financial difficulties and living in Nordic nations. Research limitations/implications The results reveal the need not only to transcend either/or debates about whether participants in the informal sector are universally exclusion-or exit-driven, and to adopt a both/and approach that recognises a dual informal labour market composed of an exit-driven upper tier and exclusion-driven lower tier, but also for wider research on the relative sizes of these two tiers in individual countries and other global regions, along with which groups populate these tiers. Originality/value This is the first evaluation of the internal dualism of the informal sector in the European Union.

2018 ◽  
Vol 40 (5) ◽  
pp. 889-902 ◽  
Author(s):  
Colin Charles Williams ◽  
Slavko Bezeredi

Purpose To transcend the long-standing debate regarding whether workers are driven into the informal economy by either their involuntary “exclusion” or voluntary “exit” from the formal economy, the purpose of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and an exclusion-driven “lower-tier” of informal workers, and to explore its policy implications. Design/methodology/approach To do so, data are reported from a 2015 survey of the informal economy conducted in South-East Europe involving 6,019 face-to-face interviews in Bulgaria, Croatia and FYR Macedonia. Findings Identifying a dual informal labour market with three exit-driven informal workers for every exclusion-driven informal worker, a multinomial logit regression analysis reveals that, compared to the exclusion-driven “lower tier”, the exit-driven “upper tier” is significantly more likely to be populated by the formally employed, retired and those not struggling financially. Participation is not affected by the perceived severity of penalties and likely risks of detection, but relative to those in the exclusion-driven “lower tier”, there is a significant correlation between those doing so for exit rationales and their lack of both horizontal trust and vertical trust in formal institutions. Practical implications The outcome is a call to transcend the conventional deterrence approach of increasing the penalties and risks of detection. Instead, to tackle those driven by exit rationales, tackling both the lack of horizontal trust that other citizens are operating in a compliant manner and the lack of vertical trust in formal institutions is advocated. To tackle exclusion-driven informal workers, meanwhile, a focus upon the macro-level economic and social conditions which lead to their participation is required. Originality/value This is the first paper to empirically evaluate the existence of a dual informal labour market and to evaluate its policy implications.


Subject Defining the informal sector in Latin America. Significance Although variable across the region, the so-called ‘informal sector’ has long been a structural characteristic of most Latin American societies. However, its measurement has long proved problematic as, indeed, has its definition. Business organisations have argued that informality needs to be tackled by reducing the barriers to access to the ‘formal’ sector, while others have maintained that it is a problem of reinforcing property rights. Impacts Informality will encourage further migration, often overseas. The divide between extra-legal and illegal activity will remain blurred, like that between self-employment and informality. Countries with large informal sectors will be obliged to embrace them rather than reject them.


2017 ◽  
Vol 38 (3) ◽  
pp. 489-503 ◽  
Author(s):  
Colin C. Williams ◽  
Ioana A. Horodnic

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):  
Tchakounté Njoda Mathurin ◽  
MBAM Ulrich Gaetan

In this paper, we analyze the Labour Force Participation Rate (LFPR) of informal workers in Cameroon. We also estimate the effects of some determining factors on LFP decisions. We use data from the Cameroon National Institute of Statistics (CNIS), a three-wave panel obtained respectively in 2001, 2005 and 2010 for a sample of individuals in the labour market. The sample data of the national population is representative. All information’s on demographic, socioeconomic and employment characteristics used in this study are provided by the CNIS database. It is particularly remarkable that the LFPR in informal sector increased substantially during latest years, particularly those of young workers. This rise in the LFPR is principally explained by the significant increase in the labour-market activity of the urban younger generation which has been improved by migration. Estimating a simple model of LFP with logistic methodology, we find that poverty, age and urbanization are significantly related with LFPR of informal labour market in Cameroon.


2002 ◽  
Vol 138 (1) ◽  
pp. 148-160 ◽  
Author(s):  
Eric J. Pentecost ◽  
John G. Sessions

2021 ◽  
Vol 7 (12) ◽  
pp. 474-496
Author(s):  
Nikos Papadakis ◽  
Maria Drakaki ◽  
Sofia Saridaki ◽  
Vassilis Dafermos

Ιn the last decade, there has been a widespread expansion of both precarious work and precarious forms of employment (such as temporary and low-qualified jobs, seasonal and part-time jobs etc.), in which a growing share of young people work. The impact of precarious work on young people is likely to be permanent, while it seems to affect (even over-determine) their life courses. Non-smooth and early transitions into labour market are very likely to worsen progressively their long-term life chances (Lodovici & Semenza, 2012: 7). Undoubtedly, the long-lasting global economic Crisis and the subsequent Recession, has heavily affected the state of play in the labour market worldwide, provoking severe modifications both in the field of employment and countries’ social cohesion. Based on the above mentioned, the paper deals with precarious work in general, while it emphasizes precarious work among youth. It initially captures, briefly, the state of play in terms of the impact of the Crisis on the widening of the phenomenon of precarious work and then it focuses on theoretical insights and critical conceptual definitions concerning precariousness in the labour market. Further, based on secondary quantitative -data analysis, it analyses the key- parameters and facets of precarious work (focusing on youth) in the European Union and, mainly, in Greece. Additionally, it briefly presents parameters of the impact of the COVID-19 pandemic on precariousness in Greece. Finally, the paper explores the correlation between precarious work and social vulnerability, especially among young people. The present paper is based on an ongoing Research Project. More specifically, this research is co-financed by Greece and the European Union (European Social Fund- ESF) through the Operational Programme «Human Resources Development, Education and Lifelong Learning 2014-2020» in the context of the project “Precarious Work and Youth in today’s Greece: secondary quantitative analysis, qualitative filed research and research-based policy proposals” (MIS 5048510).


2021 ◽  
Vol 49 (1) ◽  
pp. 51-83
Author(s):  
Jorre Vannieuwenhuyze ◽  
Karen Donders ◽  
Ike Picone

Abstract Do I see or not? A study on the impact of placement on program consumption in an on-demand environment The European Union (2018) stipulates that Member States can implement rules to ensure the findability and visibility of local content in video- on- demand environments. Indeed, several countries are concerned that their own audiovisual programs or journalistic products will be consumed less in such environments. It is argued that, in such environments, media users completely decide themselves about their consumption agency, but such statements are also contested. In this research we analyze the impact of placement on the consumption of audiovisual programs in the video-on-demand environments of the Flemish broadcasters VRT and DPG. From experimental research we conclude that there is indeed a significant impact of placement on consumption behavior and that, in other words, manipulations by intermediary gatekeepers can have potentially negative and positive effects on the consumption of local content. Government regulation would therefore be a useful tool to safeguard the importance of proximity of content.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dmytro S. Melnyk ◽  
Oleg A. Parfylo ◽  
Oleksii V. Butenko ◽  
Olena V. Tykhonova ◽  
Volodymyr O. Zarosylo

Purpose The experience of most European Union (EU) Member States has demonstrated effective anti-corruption practices, making the EU one of the leaders in this field, which can be used as an example to learn from in the field of anti-corruption. The purpose of this study is to analyze and identify the main features of anti-corruption legislation and strategies to prevent corruption at the national and supranational levels of the EU. Design/methodology/approach The following methods were used in the work: discourse and content analysis, method of system analysis, method of induction and deduction, historical-legal method, formal-legal method, comparative-legal method and others. Using the historical and legal method, the evolution of the formation of anti-corruption regulation at the supranational level was revealed. The comparative law method helped to compare the practices of the Member States of the EU in the field of anti-corruption regulation. The formal-legal method is used for generalization, classification and systematization of research results, as well as for the correct presentation of these results. Findings The main results, prospects for further research and the value of the material. The paper offers a critical review of key EU legal instruments on corruption, from the first initiatives taken in the mid-1990s to recent years. Originality/value In addition, the article analyzes the relevant anti-corruption legislation in the EU member states that are in the top 10 countries with the lowest level of corruption, namely: Denmark, Finland, Sweden, the Netherlands, Germany and Luxembourg.


Sign in / Sign up

Export Citation Format

Share Document