Why is informal employment more common in some countries? an exploratory analysis of 112 countries

Purpose: This paper evaluates competing explanations for the greater prevalence of informal employment in some countries rather than others. These variously explain informal employment to be a result of either economic under-development and the lack of modernisation of governance (‘modernisation’ theory), higher taxes and too much state intervention (‘neo-liberal’ theory) or inadequate government intervention to protect workers from poverty (‘political economy’ theory). Methodology: To do this, an International Labour Organisation data base produced in 2018 on the prevalence of informal employment in 112 countries (comprising 90 per cent of the global workforce) is analysed, and macro-level economic and social conditions reflecting each of these theories tested using bivariate regressions. Findings: The prevalence of informal employment ranges from 94.6% of total employment in Burkina Faso to 1.2% in Luxembourg. Evaluating the validity of the competing theories, neo-liberal theory is refuted, and a call made to synthesise the modernisation and political economy perspectives in a new ‘neo-modernisation’ theory that tentatively associates the greater prevalence of informal employment with lower economic under-development, greater levels of public sector corruption, smaller government and lower levels of state intervention to protect workers from poverty. Practical implications: This paper tentatively reveals the structural economic and social conditions that need to be addressed globally to reduce informal employment. Originality/value: This is the first paper to report the results of a harmonised dataset based on common criteria to measure the varying prevalence of informal employment globally (across 112 countries representing 90 per cent of global employment) in order to determine the structural economic and social conditions associated with higher levels of informal employment

Unemployment Convergence in Central and Eastern European Countries: Driving Forces and Cluster Behavior

Employing a nonlinear logistic smooth transition autoregression system and comovement analysis, we find that the German business cycle has acted as a common driver affecting the cyclical behavior of unemployment rates in Central and Eastern European countries. In addition, we identify two convergence clubs in unemployment dynamics. The first comprises the Baltic States, Hungary, and Poland, and the second group of countries is composed of the Czech Republic and Slovakia. Interestingly, this classification matches the labor market policies and institutional divergences observed among these countries

Impact of the efficiency of the tax administration on tax evasion

In this paper, we analyse the performance of the tax administration using data envelopment analysis (DEA) and regression analysis in 13 European countries. In the first phase, a DEA input- oriented model with the three input and two output parameters for the efficiency evaluation has been used. The influence of selected independent variables on the grey economy, which represents an approximation of tax evasion and efficiency of tax administration, was conducted by regression analysis in the second phase. The main goal is to investigate the influence of the relative efficiency and number of employees in tax administration as well as country employment rate on the grey economy level

The financing of Italian firms and the credit crunch: findings and exit strategies

The aim of the paper is to analyse how credit crunch has modified the traditional bank-firm relationship with a particular attention to the Italian situation. Our analysis reinforces the finding that in Italy, the credit available to the real economy is insufficient in terms not only of quantity but also of quality. The subsequent step is to identify and discuss possible exit strategies for eliminating the credit crunch and to overcome serious intrinsic shortcomings in terms of alternative instruments, markets and intermediaries. In fact, if on the one hand the crisis has revealed the underdevelopment of the Italian financial market, the insufficient role of institutional investors, the embryonic state of the corporate bond markets and the virtual non-existence of commercial paper markets; on the other hand, it could finally provide the opportunity for the development of these channels. The changing role of banks in the new scenario is also analysed as well as the characteristics firms will require to benefit from it

Analysis of trends in mapping and assessment of ecosystem condition in Europe

Ecosystem condition is the overall quality of an ecosystem unit, in terms of its biological, physical and chemical characteristics underpinning its capacity to generate ecosystem services. Changes in ecosystem condition affect the delivery of services and therefore human well-being. Despite increasing research in this field, the relations between biodiversity, ecosystem condition and services are still not well understood. This study examined scientific articles and reports to analyse the development of ecosystem condition mapping and assessments in Europe since the year 2000. The aim was to provide an overview of the current state of research and to highlight some challenges for ecosystem condition and ecosystem services research. The review analysed the ecosystems under study, scales, methods, indicators, and the ecosystem services assessed. Based on this review, some gaps were identified, especially in the methods used for condition assessment, the coverage of ecosystems, and the applicability of indicators in policy. It is necessary to develop integrative methods to determine ecosystems condition and its influence on the ecosystem service provision, in order to produce robust information. The results of this review can be harnessed by people who need an overview about existing ecosystem condition studies, such as scientists, land managers or decision makers

Natural capital accounting perspectives: a pragmatic way forward

Introduction: Recent debates surrounding the application of natural capital accounting (NCA) have produced several approaches to further develop this system, as well as highlighted a number of conceptual and methodological issues that need to be resolved before mainstreaming NCA into policy and decision making. We argue that prolonged debate over the value concepts (i.e., exchange versus other values) underpinning different modifications to NCA has slowed progress in experimentation and uptake by policymakers.Outcomes: Consequently we propose three broad approaches which can be progressed in parallel to reinvigorate experimentation with the NCA principles and practice, while at the same time generating policy relevant tools and evidence bases for decision support. The three approaches are; extended SNA accounting anchored to the use of exchange values; a complementary accounts network (CAN) that utilizes plural values as supplementary accounts to the SNA system; and wealth accounting that focuses on measures of welfare and wellbeing. The three approaches are complementary and data developed in any one can inform the other two.Conclusions: We contend that CAN offers the most flexibility and opportunities to progress short term support for decision making on environmental issues which are now becoming urgent