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Employed Unemployed? On Shadow Employment During Transition

Author

Listed:
  • Joanna Tyrowicz

    (Faculty of Economic Sciences, University of Warsaw
    National Bank of Poland
    Rimini Center for Economic Analysis)

  • Stanisław Cichocki

    (Faculty of Economic Sciences, University of Warsaw
    National Bank of Poland)

Abstract

Unregistered employment poses two types of challenges to the researchers: (i) reliably evaluating the wage differential between formally and informally employed and (ii) accounting for the push and pull factors in general and the effects of business cycle in particular. We address the former with the use of propensity score matching and analyse the evolution of the estimated average compensations and the differentials with reference to GDP and unemployment fluctuations. Using 13 years of quarterly labour force survey data from Poland on de iure unemployed but de facto employed individuals we find, that in-the-shadow compensations tend to be higher and procyclical. We also find considerable distributional heterogeneity.

Suggested Citation

  • Joanna Tyrowicz & Stanisław Cichocki, 2010. "Employed Unemployed? On Shadow Employment During Transition," Working Papers 2010-05, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2010-05
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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP28.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Jaan Masso & Kerly Krillo, 2011. "Labour Markets In The Baltic States During The Crisis 2008-2009: The Effect On Different Labour Market Groups," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 79, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. David Howden, 2011. "Europe’s Unemployment Crisis: Some Hidden Relief?," Chapters, in: David Howden (ed.), Institutions in Crisis, chapter 4, Edward Elgar Publishing.

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    More about this item

    Keywords

    undeclared employment; propensity score matching; transition;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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