Arbeitspapier

The persistence of informality: Evidence from panel data

Informality is a growing phenomenon in the developing and transition country labor market context. In particular, it is noticeable that working in an informal employment relationship is often not temporary. The degree of persistence of informality in the labor market might be due to different sources: structural state dependence due to past informality experiences and spurious state dependence due to time-invariant unobserved individual effects, which can alter the propensity of being in the informal sector independently from actual informality experiences. The purpose of our paper is to study the dynamics of informality using a genuine panel data set in the Ukrainian labor market. By estimating a dynamic panel data probit model with endogenous initial conditions, we find a highly significant degree of persistence due to previous informality experiences. This result implies that policies attempting to reduce current levels of informality may have a long-lasting effect on the labor market.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 6163

Klassifikation
Wirtschaft
Welfare Economics: General
General Welfare; Well-Being
Thema
informality
unobserved heterogeneity
state dependence
transition countries
Informeller Sektor
Schwarzarbeit
Hysteresis
Übergangswirtschaft
Ukraine

Ereignis
Geistige Schöpfung
(wer)
Akay, Alpaslan
Khamis, Melanie
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2011

Handle
URN
urn:nbn:de:101:1-2012010913906
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Akay, Alpaslan
  • Khamis, Melanie
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2011

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