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Evaluating the Relationship Between Migration and Participation in Undeclared Work: Lessons from Bosnia and Herzegovina

Author

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  • Colin C. Williams

    (University of Sheffield)

  • Adnan S. Efendic

    (University of Sarajevo School of Economics and Business)

Abstract

Until now, studies of the relationship between migration and participation in undeclared work have adopted as their unit of analysis the activity of specific migrant groups in their host country. In this paper, a novel approach is pursued by adopting a different unit of analysis. To examine the relationship between migration and participation in undeclared work, the activity of the domestic population in their home country is analysed according to their previous migration activity. To do so, data is reported from a 2015 survey of 6,021 randomly selected respondents aged between 16 and 65 years old in Bosnia and Herzegovina. The finding is that undeclared work is the sole source of earnings for 21% of the total labour force, but for 26% of those who have spent more than three months abroad, 18% of internal migrants and 22% of those who have not migrated either internally or abroad. After controlling for other determinants of undeclared work, a Probit regression analysis finds a significant 8% higher probability of participation in undeclared work for those who have spent time out of the country compared with the non-migrant population. The theoretical and policy implications are then discussed.

Suggested Citation

  • Colin C. Williams & Adnan S. Efendic, 2020. "Evaluating the Relationship Between Migration and Participation in Undeclared Work: Lessons from Bosnia and Herzegovina," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 592-606, December.
    • Handle: RePEc:nwe:eajour:y:2020:i:4:p:592-606
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    References listed on IDEAS

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    More about this item

    Keywords

    migration; informal economy; Bosnia and Herzegovina.;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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