Publication:
Labor Institutions and Their Impact on Shadow Economies in Europe

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dc.contributor.authorFialova, Kamila
dc.contributor.authorSchneider, Ondrej
dc.date.accessioned2012-03-19T18:06:46Z
dc.date.available2012-03-19T18:06:46Z
dc.date.issued2011-12-01
dc.description.abstractThis paper analyzes the role of labor market institutions in explaining the development of shadow economies in European countries. The analysis uses several alternative measures of the shadow sector, and examines the effects of labor institutions on the shadow sector in two specific regions: new and old European Union member countries, as their respective shadow sectors exhibited a different development in the past decade. Although the share of the shadow economy in gross domestic product averaged 27.5 percent in the new member countries in 1999-2007, the respective share in the old member states stood at 17.9 percent. The paper estimates the effects of labor market institutions on two sets of shadow economy indicators -- shadow production and shadow employment. Comparing alternative measures of the shadow sector allows a more granulated analysis of labor market institution effects. The results indicate that the one institution that unambiguously increases shadow economy production and employment is the strictness of employment protection legislation. Other labor market institutions -- active and passive labor market policies, labor taxation, trade union density, and the minimum wage setting -- have less straightforward and statistically robust effects and their impacts often diverge in new and old European Union member countries. The differences are not robust enough, however, to allow for rejecting the hypothesis of similar effects of labor market institutions in new and old European Union member states.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213092248
dc.identifier.doi10.1596/1813-9450-5913
dc.identifier.urihttps://hdl.handle.net/10986/3682
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5913
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CAPITAL
dc.subjectACTIVE LABOR
dc.subjectACTIVE LABOR MARKET
dc.subjectACTIVE LABOR MARKET POLICY
dc.subjectADJUSTMENT COSTS
dc.subjectADMINISTRATIVE PROCEDURES
dc.subjectADVERSE EFFECT
dc.subjectADVERSE EFFECTS
dc.subjectAGRICULTURE
dc.subjectAVERAGE UNEMPLOYMENT
dc.subjectAVERAGE UNEMPLOYMENT RATE
dc.subjectAVERAGE WAGE
dc.subjectBANKRUPTCY
dc.subjectBUSINESS CYCLE
dc.subjectCENTRALIZATION
dc.subjectCERTAIN EXTENT
dc.subjectCHECKS
dc.subjectCOLLECTIVE BARGAINING
dc.subjectCOLLECTIVE DISMISSALS
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCORPORATE TAX RATES
dc.subjectCURRENCY
dc.subjectDEADWEIGHT
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDRIVERS
dc.subjectDUMMY VARIABLE
dc.subjectDUMPING
dc.subjectEARNING
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC BOOM
dc.subjectECONOMIC CONSEQUENCES
dc.subjectECONOMIC COSTS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC FACTORS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC SECTORS
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectEFFICIENCY OF LABOR
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL RESEARCH
dc.subjectEMPIRICAL STUDIES
dc.subjectEMPLOYABILITY
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT COMPOSITION
dc.subjectEMPLOYMENT LEGISLATION
dc.subjectEMPLOYMENT PROTECTION LEGISLATION
dc.subjectENFORCEMENT OF CONTRACTS
dc.subjectENTITLEMENTS
dc.subjectENVIRONMENTAL
dc.subjectENVIRONMENTS
dc.subjectEQUILIBRIUM
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectFINANCIAL MARKETS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGOVERNMENT REGULATIONS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectHOUSEHOLD SURVEY
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN DEVELOPMENT
dc.subjectIMPLICIT TAX
dc.subjectINCOME
dc.subjectINCOME SUPPORT
dc.subjectINCOME TAXES
dc.subjectINEFFICIENCY
dc.subjectINFORMAL ECONOMY
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL LABOR MARKET
dc.subjectINFORMAL LABOR MARKETS
dc.subjectINFORMAL SECTOR
dc.subjectINTERNATIONAL BANK
dc.subjectJOB OFFER
dc.subjectJOBS
dc.subjectLABOR COSTS
dc.subjectLABOR FORCE
dc.subjectLABOR FORCE PARTICIPATION
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET FLEXIBILITY
dc.subjectLABOR MARKET INDICATORS
dc.subjectLABOR MARKET INSTITUTION
dc.subjectLABOR MARKET INSTITUTIONS
dc.subjectLABOR MARKET PERFORMANCE
dc.subjectLABOR MARKET POLICIES
dc.subjectLABOR MARKET POLICY
dc.subjectLABOR MARKET REGULATION
dc.subjectLABOR MARKET REGULATIONS
dc.subjectLABOR MARKET RIGIDITIES
dc.subjectLABOR MARKET RIGIDITY
dc.subjectLABOR MARKETS
dc.subjectLABOR REGULATION
dc.subjectLABOR REGULATIONS
dc.subjectLABOR STANDARDS
dc.subjectLABOR SUPPLY
dc.subjectLEGAL ENVIRONMENT
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGAL PROTECTION
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLIBERALIZATION OF CAPITAL ACCOUNT
dc.subjectLIVING CONDITIONS
dc.subjectM1
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMARKET FACTORS
dc.subjectMINIMUM WAGE
dc.subjectMINIMUM WAGES
dc.subjectMONOPSONY
dc.subjectMOTIVATION
dc.subjectOCCUPATIONS
dc.subjectOPPORTUNITY COSTS
dc.subjectPAID WORKERS
dc.subjectPASSIVE LABOR
dc.subjectPAYROLL TAXES
dc.subjectPENSION
dc.subjectPENSION SYSTEM
dc.subjectPENSION SYSTEMS
dc.subjectPENSIONS
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPOSITIVE EFFECTS
dc.subjectPREVIOUS SECTION
dc.subjectPREVIOUS STUDIES
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPRODUCTIVITY INCREASES
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC BUDGETS
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC SERVICES
dc.subjectPURCHASING POWER
dc.subjectREGRESSION ANALYSIS
dc.subjectREGULAR EMPLOYMENT
dc.subjectREGULATORY FRAMEWORK
dc.subjectRETURN
dc.subjectRULE OF LAW
dc.subjectSERVICE SECTOR
dc.subjectSOCIAL COHESION
dc.subjectSUBSTITUTION EFFECTS
dc.subjectTAX
dc.subjectTAX COLLECTION
dc.subjectTAX COLLECTIONS
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REVENUES
dc.subjectTAX SYSTEM
dc.subjectTAXATION
dc.subjectTEMPORARY EMPLOYMENT
dc.subjectTEMPORARY WORK
dc.subjectTOTAL LABOR FORCE
dc.subjectTRADE REFORMS
dc.subjectTRADE UNION
dc.subjectTRADE UNIONS
dc.subjectTRANSITION COUNTRIES
dc.subjectTRANSITION ECONOMIES
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT BENEFITS
dc.subjectUNEMPLOYMENT INSURANCE
dc.subjectUNEMPLOYMENT INSURANCE SYSTEM
dc.subjectUNEMPLOYMENT RATE
dc.subjectUNFAIR COMPETITION
dc.subjectUNION DENSITY
dc.subjectVALUE ADDED
dc.subjectWAGE DETERMINATION
dc.subjectWAGE INCREASES
dc.subjectWAGE LEVEL
dc.subjectWAGE RATES
dc.subjectWORKERS
dc.titleLabor Institutions and Their Impact on Shadow Economies in Europeen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleLabor Institutions and Their Impact on Shadow Economies in Europe
okr.date.disclosure2011-12-01
okr.date.doiregistration2025-04-10T11:06:33.058235Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213092248
okr.globalpracticeSocial Protection and Labor
okr.guid444591468249302087
okr.identifier.doi10.1596/1813-9450-5913
okr.identifier.externaldocumentum000158349_20111213092248
okr.identifier.internaldocumentum15547717
okr.identifier.reportWPS5913
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/12/13/000158349_20111213092248/Rendered/PDF/WPS5913.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.administrativeEurope and Central Asia
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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