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Formal and informal labour markets: Challenges and policy in the Central and Eastern European new EU members and candidate countries




The paper aims at comparing the formal and informal labour markets in the Central and Eastern European new EU Member States and candidate countries of the European Union. First, the current situation of the labour market is described, focusing on the recent developments since the breaking up of the East. Then the policy design of these labour markets is depicted and its effects on formal and informal labour markets. The most important challenges for employment policy as well as the effects of enlargement on the labour markets are analysed. The paper ends with a short summary.

Suggested Citation

  • Friedrich Schneider & Christina Burger, 2004. "Formal and informal labour markets: Challenges and policy in the Central and Eastern European new EU members and candidate countries," Economics working papers 2004-05, Department of Economics, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:econwp:2004_05

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    References listed on IDEAS

    1. Michael Alexeev & William Pyle, 2001. "A Note on Measuring the Unofficial Economy in the Former Soviet Republics," William Davidson Institute Working Papers Series 436, William Davidson Institute at the University of Michigan.
    2. Giles, David E A, 1999. "Measuring the Hidden Economy: Implications for Econometric Modelling," Economic Journal, Royal Economic Society, vol. 109(456), pages 370-380, June.
    3. Arndt, Sven & Handler, Heinz & Salvatore, Dominick, 2000. "Eastern enlargement: the sooner, the better?," MPRA Paper 44943, University Library of Munich, Germany.
    4. Eric Friedman & Simon Johnson & Daniel Kaufmann & Pablo Zoido-Lobaton, 1999. "Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69," Departmental Working Papers 199921, Rutgers University, Department of Economics.
    5. Friedman, Eric & Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 2000. "Dodging the grabbing hand: the determinants of unofficial activity in 69 countries," Journal of Public Economics, Elsevier, vol. 76(3), pages 459-493, June.
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    Cited by:

    1. Olga Pavlova & Oleksandr Rohozynsky, 2005. "Labor Markets in CIS Countries," CASE Network Studies and Analyses 0311, CASE-Center for Social and Economic Research.

    More about this item


    Formal and informal labour markets; shadow economy; labour market policy; unemployment; employment; wage compensation; labour market regulation;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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