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Mobility, poverty and well-being among the informally employed in Bosnia and Herzegovina

Author

Listed:
  • Gorana Krstic

    (Economics Institute, Belgrade)

  • Peter Sanfey

    (European Bank for Reconstruction and Development)

Abstract

We analyse informal-sector employment in Bosnia and Herzegovina (BH), using panel data from the Living Standards Measurement Studies. We derive four main conclusions. First, there is significant labour market mobility in BH, with education being an important factor in explaining movements from informal- to formal-sector jobs. Secondly, those in informal jobs are much more likely to suffer from poverty than formally employed people. Thirdly, earnings inequality is more pronounced in the informal sector than elsewhere. Fourthly, the informally employed report lower levels of life satisfaction compared with those in almost all other groups in the labour market. Overall, we conclude that, while the informal sector may represent a vital coping strategy for many, the formal sector provides much better prospects for prosperity and well-being.

Suggested Citation

  • 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.
    • Handle: RePEc:ebd:wpaper:101
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    More about this item

    Keywords

    Informal sector; poverty; mobility; happiness; Bosnia and Herzegovina;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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