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Polish Households' Behavior in the Regular and Informal Economies

  • François Gardes

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Christophe Starzec

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

The paper analyzes characteristics of the informal economy in Poland in the context of transition using a specific survey carried out in the frame of the classic Labor Force Survey 1995 by the Polish National Statistical office (GUS). The participation probabilities of three types of informal activities (working, buying and hiring) are discussed. Their interdependencies are discussed the hypothesis of the network or neighborhood effects. The impact of the household's participation on informal markets on its regular consumption is estimated by imputing the informal activity probabilities to the consumption surveys and panel. Then, the specific consumption profiles of participants in the informal market can be identified. This participation does influence significantly more than half of the household's expenditure groups. Moreover, the participants of the informal economy distinguish themselves by the higher individual full prices (integrating 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-00449447.

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Date of creation: Sep 2009
Date of revision:
Publication status: Published, Revue Economique, 2009, 60, 5, 1181-1210
Handle: RePEc:hal:cesptp:halshs-00449447
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00449447
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  1. Lacroix, G. & Fortin, B., 1991. "Utility-Based Estimation of Labor Supply Functions in the Regular and Irregular Sectors," Cahiers de recherche 9020, Université Laval - Département d'économique.
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  3. 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 838-60, October.
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  5. repec:att:wimass:9127 is not listed on IDEAS
  6. Marc-Arthur Diaye & François Gardes & Christophe Starzec, 2010. "GARP violation, Economic Environment Distortions and Shadow Prices: Evidence from Household Expenditure Panel Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00449463, HAL.
  7. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
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  9. 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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  11. 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.
  12. Marc-Arthur Diaye & François Gardes & Christophe Starzec, 2009. "GARP violation, Economic Environment Distortions and Shadow Prices : Evidence from Household Expenditure Panel Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00376747, HAL.
  13. 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.
  14. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  15. 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.
  16. Cowell, F A, 1990. "Tax Sheltering and the Cost of Evasion," Oxford Economic Papers, Oxford University Press, vol. 42(1), pages 231-43, January.
  17. 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.
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