Earnings Inequality and the Informal Economy: Evidence from Serbia
AbstractWe analyse the extent and evolution of informality and inequality in the Serbian labour market between 2002 and 2007, using data from the Living Standard Measurement Surveys (LSMS). Two surprising results emerge. First, the level of informal employment has risen significantly over the period, despite strong economic growth and the introduction of a range of market-oriented reforms. Second, the level of inequality in earnings seems to have remained more or less constant over the period, in contrast to the experience of other countries at a similar stage of transition. We show that informal employees earn significantly less than those in the formal sector, controlling for a range of other variables, and informality plays an increasingly important role in explaining earnings inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series The wiiw Balkan Observatory Working Papers with number 075.
Date of creation: Dec 2008
Date of revision:
Publication status: Published as The wiiw Balkan Observatory Working Paper, December 2008
Other versions of this item:
- Peter Sanfey & Gorana Krstic, 2010. "Earnings inequality and the informal economy: evidence from Serbia," Working Papers 114, European Bank for Reconstruction and Development, Office of the Chief Economist.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J4 - Labor and Demographic Economics - - Particular Labor Markets
- P2 - Economic Systems - - Socialist Systems and Transition Economies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sebastian Leitner & Mario Holzner, 2008.
"Economic Inequality in Central, East and Southeast Europe,"
European Journal of Economics and Economic Policies: Intervention,
Edward Elgar, vol. 5(1), pages 155-188.
- Sebastian Leitner & Mario Holzner, 2008. "Economic Inequality in Central, East and Southeast Europe," The wiiw Balkan Observatory Working Papers 074, The Vienna Institute for International Economic Studies, wiiw.
- Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
- Krstic, Gorana & Sanfey, Peter, 2007.
"Mobility, poverty and well-being among the informally employed in Bosnia and Herzegovina,"
Elsevier, vol. 31(3), pages 311-335, September.
- Gorana Krstic & Peter Sanfey, 2007. "Mobility, poverty and well-being among the informally employed in Bosnia and Herzegovina," Working Papers 101, European Bank for Reconstruction and Development, Office of the Chief Economist.
- Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank.
- Rosser, J. Jr. & Rosser, Marina V. & Ahmed, Ehsan, 2000. "Income Inequality and the Informal Economy in Transition Economies," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 156-171, March.
- repec:int:journl:v:5:y:2008:i:1:p:155-188 is not listed on IDEAS
- Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
- Asad Alam & Mamta Murthi & Ruslan Yemtsov & Edmundo Murrugarra & Nora Dudwick & Ellen Hamilton & Erwin Tiongson, 2005. "Growth, Poverty and Inequality : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7287, March.
- Andrew Newell & Barry Reilly, 1999.
"Rates of Return to Educational Qualifications in the Transitional Economies,"
Taylor & Francis Journals, vol. 7(1), pages 67-84.
- Newell, Andrew & Reilly, Barry, 1997. "Rates of Return to Educational Qualifications in the Transitional Economies," Discussion Papers in Economics 03/97, Department of Economics, University of Sussex.
- Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
- Edward Christie & Mario Holzner, 2004. "Household Tax Compliance and the Shadow Economy in Central and Southeastern Europe," The wiiw Balkan Observatory Working Papers 038, The Vienna Institute for International Economic Studies, wiiw.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Customer service).
If references are entirely missing, you can add them using this form.