Households’ activities in informal economy: size and behavioural aspects

Albu, Lucian-Liviu and Kim, Byung-Yeon and Duchene, Gerard (2002): Households’ activities in informal economy: size and behavioural aspects. Published in: Romanian Journal of Economic Forecasting , Vol. 3-4, : pp. 18-28.

Abstract

Using a Romanian household survey, we analyse the structure of households’ income by sources: main job, secondary job, and informal activities. We began the study by focusing on data and methodological problems, certain clarifications being necessary. Then we estimated the size of informal economy and basic behavioural regimes, along with the growth of households’ disposable income. The study permitted us to conclude on the main reasons of people to operate in the informal sector. Finally, based on the available data on the households’ deciles relative to their monthly income, we extended some conclusions to the year 2000 and estimated the shares of informal income within the ten groups of population. Also, by applying such methodology we computed some comparative indicators between the years 1996 and 2000.

• Item Type: MPRA Paper
• Language: English
• Keywords: Secondary Job; Officially Declared Income; Decent Income; Hidden Income
• Subjects: P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P36 - Consumer Economics ; Health ; Education and Training ; Welfare, Income, Wealth, and Poverty; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models; D - Microeconomics > D1 - Household Behavior and Family Economics > D10 - General; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty

References

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*** Institutul National de Statistica (2001), “Veniturile, cheltuielile si consumul populatiei in anul 2000”, Bucharest.