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

The South-East European Journal of Economics and Business, Vol. 7, 2012, No.1, pp. 99-110.

12 Pages Posted: 21 Dec 2015

See all articles by John Hudson

John Hudson

University of Bath - Department of Economics

Colin Williams

University of Sheffield - School of Management

Marta Orviska

Matej Bel University

Sara Nadin

University of Liverpool

Date Written: 2012

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.

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

JEL Classification: E26, M26, O17, K42

Suggested Citation

Hudson, John R. and Williams, Colin and Orviska, Marta and Nadin, Sara, Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey (2012). The South-East European Journal of Economics and Business, Vol. 7, 2012, No.1, pp. 99-110., Available at SSRN: https://ssrn.com/abstract=2706177

John R. Hudson

University of Bath - Department of Economics ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom
+44 (0)1225 825287 (Phone)
+44 (0)1225 323423 (Fax)

Colin Williams (Contact Author)

University of Sheffield - School of Management ( email )

15 Conduit Road
Sheffield, S10 1FL
United Kingdom

HOME PAGE: http://https://www.sheffield.ac.uk/management/staff/williams/index

Marta Orviska

Matej Bel University ( email )

Tajovskeho 10
SK 974 01 Banska Bystrica, 97401
Slovakia

Sara Nadin

University of Liverpool ( email )

Chatham Street
Liverpool, L69 7ZH
United Kingdom

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