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Evaluating 'Varieties of Capitalism' by the Extent and Nature of the Informal Economy: The Case of South-Eastern Europe

Author

Listed:
  • Colin C. Williams

    (School of Management, University of Sheffield)

  • Abbi Kedir

    (Department of Economics, University of Leicester)

  • Meryem Fethi

    (School of Management, University of Leicester)

  • Sara Nadin

    (School of Management, University of Sheffield)

Abstract

'Varieties of capitalism' have been conventionally delineated by the varying types of formal economy that exist. Given that the vast majority of employment globally is in the informal economy, this paper offers a new analytical framework which delineates varieties of capitalism by their degree of informalization and the character of the informal economy. Examining South East Europe through this lens using evidence from a 2007 Eurobarometer survey, the finding is that this region is a 'quasi-formal market economy' and its informal economy composed largely of quasi-formal employment relations, albeit with significant variations in the degree and nature of the informal economy across different countries, sectors and population groups.

Suggested Citation

  • Colin C. Williams & Abbi Kedir & Meryem Fethi & Sara Nadin, 2012. "Evaluating 'Varieties of Capitalism' by the Extent and Nature of the Informal Economy: The Case of South-Eastern Europe," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(2), pages 113-130.
    • Handle: RePEc:seb:journl:v:10:y:2012:i:2:p:113-130
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    References listed on IDEAS

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    1. Liaropoulos, Lycourgos & Siskou, Olga & Kaitelidou, Daphne & Theodorou, Mamas & Katostaras, Theofanis, 2008. "Informal payments in public hospitals in Greece," Health Policy, Elsevier, vol. 87(1), pages 72-81, July.
    2. Martha Alter Chen, 2007. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," Working Papers 46, United Nations, Department of Economics and Social Affairs.
    3. Gabriella Lazaridis & Maria Koumandraki, 2003. "Survival Ethnic Entrepreneuers in Greece: A Mosaic of Informal and Formal Business Activities," Sociological Research Online, , vol. 8(2), pages 38-49, May.
    4. Byung‐Yeon Kim, 2005. "Poverty and informal economy participation," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 163-185, January.
    5. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    6. Pauline Dibben & Colin C. Williams, 2012. "Varieties of Capitalism and Employment Relations: Informally Dominated Market Economies," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51, pages 563-582, April.
    7. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    8. Fulcher, James, 2004. "Capitalism: A Very Short Introduction," OUP Catalogue, Oxford University Press, number 9780192802187.
    9. Charles Woolfson, 2007. "Pushing the envelope: the `informalization' of labour in post-communist new EU member states," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 551-564, September.
    10. John Round & Colin C. Williams & Peter Rodgers, 2008. "Corruption in the post-Soviet workplace: the experiences of recent graduates in contemporary Ukraine," Work, Employment & Society, British Sociological Association, vol. 22(1), pages 149-166, March.
    11. Colin C. Williams & John Round & Peter Rodgers, 2007. "Beyond the formal/informal economy binary hierarchy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(6), pages 402-414, May.
    12. Colin C. Williams & Sara Nadin, 2012. "Tackling Undeclared Work in the European Union," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 20-25, July.
    13. Colin C. Williams & Jan Windebank, 2003. "The slow advance and uneven penetration of commodification," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 27(2), pages 250-264, June.
    14. Rainer Neef, 2002. "Aspects of the Informal Economy in a Transforming Country: The Case of Romania," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(2), pages 299-322, June.
    15. Colin C. Williams, 2006. "The Hidden Enterprise Culture," Books, Edward Elgar Publishing, number 3948.
    16. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications - Books, The World Bank Group, number 6730, December.
    17. Colin C. Williams, 2010. "Beyond the market/non‐market divide: a total social organisation of labour perspective," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(6), pages 402-414, May.
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    Cited by:

    1. Colin C. Williams & Slavko Bezeredi, 2018. "Evaluating Policy Approaches Towards Undeclared Work: Some Lessons from FYR of Macedonia," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 16(2), pages 171-187.
    2. Colin C. Williams & Ioana A. Horodnic, 2015. "Who Participates in the Undeclared Economy in South-Eastern Europe? An Evaluation of the Marginalization Thesis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 13(2), pages 157-175.
    3. Colin C Williams & Slavko Bezeredi, 2017. "Explaining Consumers’ Motives for Purchasing from the Informal Economy: Some Lessons from a Study of Bulgaria, Croatia and FYR of of Macedonia," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 515-531, December.
    4. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.

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    More about this item

    Keywords

    Informal Economy; Varieties of Capitalism; Employment Relations; South-East Europe;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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