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Polish Households' Behavior in the Regular and Informal Economies

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  • François Gardes

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Christophe Starzec

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

Abstract

The paper analyzes characteristics of the informal economy in Poland in the context of transition using a specific survey carried out in the frame of the classic Labor Force Survey 1995 by the Polish National Statistical office (GUS). The participation probabilities of three types of informal activities (working, buying and hiring) are discussed. Their interdependencies are discussed the hypothesis of the network or neighborhood effects. The impact of the household's participation on informal markets on its regular consumption is estimated by imputing the informal activity probabilities to the consumption surveys and panel. Then, the specific consumption profiles of participants in the informal market can be identified. This participation does influence significantly more than half of the household's expenditure groups. Moreover, the participants of the informal economy distinguish themselves by the higher individual full prices (integrating non monetary constraints and resources).

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00449447.

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Date of creation: Sep 2009
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Publication status: Published, Revue Economique, 2009, 60, 5, 1181-1210
Handle: RePEc:hal:cesptp:halshs-00449447

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Keywords: Informal economy participation; Consumer behavior; Cross-section-panel estimation;

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  1. Fortin, Bernard & Lacroix, Guy & Montmarquette, Claude, 1997. "Are Underground Workers More Likely to be Underground Consumers?," Cahiers de recherche, Université Laval - Département d'économique 9710, Université Laval - Département d'économique.
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Cited by:
  1. Izabela Styczynska, 2012. "Determinants of household demand for services - Formal Versus Informal Sector," CASE Network Studies and Analyses, CASE-Center for Social and Economic Research 444, CASE-Center for Social and Economic Research.

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