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Estimating The Size Of Romanian Shadow Economy. A Labour Approach

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  • Adriana AnaMaria DAVIDESCU (ALEXANDRU)

    (The Bucharest University of Economic Studies Bucharest, Department of Statistics and Econometrics)

Abstract

The size of Romanian shadow economy was estimated using the labour approach covering the period 2000-2009. Two types of data were used: administrative and survey. The empirical results reveal, for both source data (administrative and survey) the existence of a negative relation between activity rates and the estimated value of unofficial employment as expected. The analysis of the data for the period 2001-2009 indicates a substantial difference in the results obtained. While the figures from administrative data report only 800 thousand persons unofficially employed, the survey results reveal about 1900 thousand persons that work in unofficial sector. This difference is due to the different ways of data collecting for the official employment and unemployment. Correlation coefficients for the period 2001-2009 reveal for both types of data (administrative and survey) the presence of a negative relationship between official unemployment and unofficial employment. Given results are approximatively and show the level of Romanian shadow economy which is presumably underestimated. These phenomena occur because of available statistics and method limitations.

Suggested Citation

  • Adriana AnaMaria DAVIDESCU (ALEXANDRU), 2014. "Estimating The Size Of Romanian Shadow Economy. A Labour Approach," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 3(1), pages 25-37, JULY.
    • Handle: RePEc:aes:jsesro:v:3:y:2014:i:1:p:25-37
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    References listed on IDEAS

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    1. Bojan Nastav & Stefan Bojnec, 2007. "Shadow Economy in Slovenia: The Labour Approach," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(2), pages 193-208.
    2. Feige, Edgar L., 1990. "Defining and estimating underground and informal economies: The new institutional economics approach," World Development, Elsevier, vol. 18(7), pages 989-1002, July.
    3. Marija Svec, 2009. "Underground Economy in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 33(4), pages 401-429.
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    Cited by:

    1. Adriana AnaMaria DAVIDESCU(ALEXANDRU), 2015. "Identifying The Informality Poles At County Level In Romania. Perspectives From Labour Approach," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 4(2), pages 75-87, DECEMBER.
    2. Vasile Alecsandru STRAT, 2015. "The relationship between the education system and the inflows of FDI for the Central and East European EU new member states," Romanian Journal of Economics, Institute of National Economy, vol. 41(2(50)), pages 76-92, december.
    3. Marji Tania ISSA EID, 2016. "What Do People Want From Their Jobs? A Dual Factor Analysis Based On Gender Differences Drain," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 5(1), pages 42-55, JULY.
    4. Gheorghe H. Popescu & Adriana Ana Maria Davidescu & Catalin Huidumac, 2018. "Researching the Main Causes of the Romanian Shadow Economy at the Micro and Macro Levels: Implications for Sustainable Development," Sustainability, MDPI, vol. 10(10), pages 1-37, September.

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    More about this item

    Keywords

    shadow economy; unofficial employment; official employment; official unemployment; labour approach; Romania;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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