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Polish Households' behavior in the Regular and Informal Economies

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Listed author(s):
  • François Gardes

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, PSE - Paris School of Economics)

  • Christophe Starzec

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

Abstract

This paper analyzes characteristics of the informal economy in Poland in the context of transition, using a specific survey carried out in the framework of the classic Labour Force Survey, conducted by the Polish National Statistical office (GUS), in 1995. The participation probabilities of three types of informal activities (working, buying and hiring) are discussed. Their interdependencies are analyzed in the light of the hypothesis of network or neighborhood effects. The impact of a household's participation in informal markets on its regular consumption is estimated by imputing the probability of its informal activity in the consumption surveys and panels. Such participation does significantly influence more than half of household's expenditure on goods and services. Moreover, the participants of the informal economy distinguish themselves by higher individual full prices (integrating both monetary and non-monetary constraints and resources).

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00375543.

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Length:
Date of creation: Mar 2009
Publication status: Published in Documents de travail du Centre d'Economie de la Sorbonne 2009.17 - ISSN : 1955-611X. 2009
Handle: RePEc:hal:cesptp:halshs-00375543
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00375543
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Keywords: Informal economy; consumer behavior; cross-section-panel estimation; L'économie informelle; comportement de consommation; estimation en coupe transversale et en panel;

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Find related papers by JEL classification:
  • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
  • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
  • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
  • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
  • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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  1. Fortin, B. & Lacroix, G., 1991. "The Marginal Cost of Public Funds in the Presence of an Irregular Sector: An Empirical Investigation," Papers 9129, Laval - Recherche en Energie.
  2. Fortin, Bernard & Lacroix, Guy & Villeval, Marie-Claire, 2007. "Tax evasion and social interactions," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2089-2112, December.
  3. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
  4. Fortin, Bernard & Lacroix, Guy & Montmarquette, Claude, 2000. "Are Underground Workers More Likely to be Underground Consumers?," Economic Journal, Royal Economic Society, vol. 110(466), pages 838-860, October.
  5. Schneider, Friedrich G., 2007. "Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 1, pages 1-66.
  6. Marc-Arthur Diaye & François Gardes & Christophe Starzec, 2009. "GARP violation, economic environment distortions and shadow prices: Evidence from household expenditure panel data," Documents de travail du Centre d'Economie de la Sorbonne 09020, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  7. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 531-542.
  8. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  9. Charemza, Wojciech W., 1990. "Parallel markets, excess demand and virtual prices : An empirical approach," European Economic Review, Elsevier, vol. 34(2-3), pages 331-339, May.
  10. Lacroix, Guy & Fortin, Bernard, 1992. "Utility-Based Estimation of Labour Supply Functions in the Regular and Irregular Sectors," Economic Journal, Royal Economic Society, vol. 102(415), pages 1407-1422, November.
  11. repec:adr:anecst:y:2008:i:90:p:01 is not listed on IDEAS
  12. Sabine Bernabè & Marco Stampini, 2009. "Labour mobility during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(2), pages 377-409, 04.
  13. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  14. Cowell, F A, 1990. "Tax Sheltering and the Cost of Evasion," Oxford Economic Papers, Oxford University Press, vol. 42(1), pages 231-243, January.
  15. Edgar L. Feige, 2003. "Underground Activity And Institutional Change: Productive, Protective And Predatory Behavior In Transition Economies," Development and Comp Systems 0305001, EconWPA.
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Cited by:

  1. Dagmara Nikulin, 2016. "How To Define And Measure Informal Employment In Developed Countries? A Case Of Poland," GUT FME Working Paper Series A 35, Faculty of Management and Economics, Gdansk University of Technology.
  2. Nesma Ali & Boris Najman, 2016. "Informal Competition, Firms Productivity and Policy Reforms in Egypt," Working Papers 1025, Economic Research Forum, revised Jul 2016.
  3. repec:eee:rujoec:v:2:y:2016:i:1:p:56-85 is not listed on IDEAS
  4. Izabela Styczynska, 2012. "Determinants of household demand for services - Formal Versus Informal Sector," CASE Network Studies and Analyses 444, CASE-Center for Social and Economic Research.

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