Eliciting permanent and transitory undeclared work from matched administrative and survey data

Arbeitspapier

We study the undeclared work patterns of Hungarian employees in relatively stable jobs, using a panel dataset that matches individual-level self-reported Labour Force Survey (LFS) data with administrative data from the Pension Directorate for 2001-2006. We estimate the determinants of undeclared work using Heckman-type random-effects panel probit models, and develop a two-regime model to separate permanent and transitory undeclared work, where the latter follows a Markov chain. We find that about 6 per cent of workers went permanently unreported for six consecutive years, and a further 3-4 per cent were transitorily unreported in any given year. By simulating the permanent and transitory components of undeclared work, we examine the implications for health and pension eligibility.

Object Details

• ISBN: 978-615-5594-45-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Budapest Working Papers on the Labour Market ; No. BWP - 2016/5

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Tax Evasion and Avoidance ; Informal Labor Markets
• Subject: undeclared work ; labour input method ; matched administrative-survey data ; random-effects panel probit model with endogenous selection ; Markov chain

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Elek, Péter ; Köllő, János
• Event: Veröffentlichung
• (who): Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies
• (where): Budapest
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/173670
• Last update: 10.03.2025, 11:44 AM CET