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Households’ activities in informal economy: size and behavioural aspects

Author

Listed:
  • Albu, Lucian-Liviu
  • Kim, Byung-Yeon
  • Duchene, Gerard

Abstract

Using a Romanian household survey, we analyse the structure of households’ income by sources: main job, secondary job, and informal activities. We began the study by focusing on data and methodological problems, certain clarifications being necessary. Then we estimated the size of informal economy and basic behavioural regimes, along with the growth of households’ disposable income. The study permitted us to conclude on the main reasons of people to operate in the informal sector. Finally, based on the available data on the households’ deciles relative to their monthly income, we extended some conclusions to the year 2000 and estimated the shares of informal income within the ten groups of population. Also, by applying such methodology we computed some comparative indicators between the years 1996 and 2000.

Suggested Citation

  • Albu, Lucian-Liviu & Kim, Byung-Yeon & Duchene, Gerard, 2002. "Households’ activities in informal economy: size and behavioural aspects," MPRA Paper 13072, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13072
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    References listed on IDEAS

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    1. Albu, Lucian Liviu, 2007. "Underground Economy And Fiscal Policies Modeling," Working Papers of Institute for Economic Forecasting 071202, Institute for Economic Forecasting.
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    Cited by:

    1. Lucian Liviu ALBU & Ion GHIZDEANU & Mărioara IORDAN, 2008. "Informal Economic Estimation Models at Macroeconomic Level. Some Theoretical and Methodologial Considerations," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 1(2), pages 177-190.
    2. Albu, Lucian-Liviu, 2007. "A model to estimate informal economy at regional level: Theoretical and empirical investigation," MPRA Paper 3760, University Library of Munich, Germany.

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    1. Albu, Lucian Liviu & Kim, Byung Yeon & Duchene, Gerard, 2002. "AN ATTEMPT TO ESTIMATE THE SIZE OF INFORMAL ECONOMY BASED ON HOUSEHOLD BEHAVIOUR MODELING (l)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 17-24, March.
    2. Albu, Lucian-Liviu, 2007. "A model to estimate informal economy at regional level: Theoretical and empirical investigation," MPRA Paper 3760, University Library of Munich, Germany.
    3. Dobrescu, Emilian, 1996. "Macromodels of the Romanian transition Economy," MPRA Paper 35810, University Library of Munich, Germany.
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    7. Lucian Liviu ALBU & Ion GHIZDEANU & Mărioara IORDAN, 2008. "Informal Economic Estimation Models at Macroeconomic Level. Some Theoretical and Methodologial Considerations," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 1(2), pages 177-190.

    More about this item

    Keywords

    Secondary Job; Officially Declared Income; Decent Income; Hidden Income;
    All these keywords.

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D10 - Microeconomics - - Household Behavior - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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