<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>The aim of this paper is to evaluate the variable impacts of the informal economy on businesses and employment relations in South East Europe. Evidence is reported from the 2009 World Bank Enterprise Survey which interviewed 4,720 businesses located in South East Europe. The finding is not only that a large informal sector reduces wage levels but also that there are significant spatial variations in the adverse impacts of the informal economy across this European region. Small, rural and domestic businesses producing for the home market and the transport, construction, garment and wholesale sectors are most likely to be adversely affected by the informal economy. The paper concludes by calling for similar research in other global regions and for a more targeted approach towards tackling the informal economy.</p></abstract>

The aim of this paper is to evaluate the variable impacts of the informal economy on businesses and employment relations in South East Europe. Evidence is reported from the 2009 World Bank Enterprise Survey which interviewed 4,720 businesses located in South East Europe. The finding is not only that a large informal sector reduces wage levels but also that there are significant spatial variations in the adverse impacts of the informal economy across this European region. Small, rural and domestic businesses producing for the home market and the transport, construction, garment and wholesale sectors are most likely to be adversely affected by the informal economy. The paper concludes by calling for similar research in other global regions and for a more targeted approach towards tackling the informal economy.

Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey

Department of Economics, University of Bath, UK

School of Management, University of Sheffield, UK

Faculty of Economics, Matej Bel University, Slovak Republic

South East European Journal of Economics and Business

The aim of this paper is to evaluate the variable impacts of the informal economy on businesses and employment relations in South East Europe. Evidence is...

Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey

Published Online: Jul 26, 2012

Page range: 99 - 110

DOI: https://doi.org/10.2478/v10033-012-0010-x

Keywords
informal economy, workers' wages, underground economy, World Bank Enterprise Survey, South-East Europe

This content is open access.

Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey

Published Online: Jul 26, 2012

Page range: 99 - 110

DOI: https://doi.org/10.2478/v10033-012-0010-x

Keywordsinformal economy, workers' wages, underground economy, World Bank Enterprise Survey, South-East Europe

This content is open access.

Keywords
informal economy, workers' wages, underground economy, World Bank Enterprise Survey, South-East Europe