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Effects of informality on Albania s labor market


  • Brunilda Muca

    () (Faculty of Economy and Agribusiness, University of Tirana, Albania)

  • Sajmir Hoxha

    (Faculty of Economy and Agribusiness, University of Tirana, Albania)

  • Galantina Doraci

    () (Faculty of Economy and Agribusiness, University of Tirana, Albania)


With the growing interest on the size of informal economy in Albania, an important concern remains the best ways to reduce its dimension. According to scholars of the field, informality in Albania may be as large as 50 percent of its official GDP, or even higher. A reflection of informality in economy is also displayed by informality in the labor market. The socio-economic changes of the late last century, along with other changes, brought about a high rate of unemployment. The effects of unemployment in Albania s informal economy will be discussed, and one of the methods used for its measure, as well as pinpoint to important lessons drawn when employers and employees are faced with one another. The aim of this paper is to focus on the reduction of informal economy, as seen through labor market lens, as an anti-crisis factor.

Suggested Citation

  • Brunilda Muca & Sajmir Hoxha & Galantina Doraci, 2012. "Effects of informality on Albania s labor market," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 4(2), pages 166-169, Decembre.
  • Handle: RePEc:rse:wpaper:v:4:y:2012:i:2:p:166-169

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    References listed on IDEAS

    1. Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo Group Munich.
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    More about this item


    informality; non-official economy; economic crises; labor market;

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure


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