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Self-employment and Small Workplaces in the Czech and Slovak Republics: Microeconometric Analysis of Labor Force Transitions

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  • Pavla Nikolovova
  • Filip Pertold

    ()

  • Mario Vozar

Abstract

In this paper we investigate the role of the business cycle for the transitions of Czech and Slovak workers to informal economy using Czech and Slovak Labor Force Survey data. We use two approximations for the participation in informal economy, self-employment and employment in small workplace (10 and fewer workers or 5 and fewer workers). Both statuses are potentially associated with the participation in an informal economy. Using the similar methodology as presented in Bosh and Maloney (2007), we show that recent recession caused substantial increase in transitions of workers from formal into both self-employment and employment. As compare to pre-recession time the flow into self- increased more than 4 times. The increase in transitions to small workplaces is less pronounced.

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Bibliographic Info

Paper provided by Central European Labour Studies Institute (CELSI) in its series Discussion Papers with number 8.

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Date of creation: 31 May 2013
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Handle: RePEc:cel:dpaper:8

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Keywords: informal economy; business cycle; labor force;

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  1. Orviska, Marta & Caplanova, Anetta & Medved, Jozef & Hudson, John, 2006. "A cross-section approach to measuring the shadow economy," Journal of Policy Modeling, Elsevier, Elsevier, vol. 28(7), pages 713-724, October.
  2. Jan Hanousek & Filip Palda, 2002. "The Evolution of Tax Evasion in the Czech Republic: A Markov Chain Analysis," Public Economics, EconWPA 0205002, EconWPA.
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