Evaluating the extent and nature of the informalization of employment relations in South-East Europe

Abstract:

The analysis of employment relations needs to include work in the informal economy. For this purpose, we propose a ‘degrees of informalization’ framework that evaluates the proportion of employment relations infused with informality and the nature of this permeation.

We apply this framework to South-East Europe, using evidence from a 2007 Eurobarometer survey. Informality is extensive, largely in the form of under-declared formal waged employment, although significant variations exist across countries.

There is a strong correlation between capitalist societies with higher levels of labour market intervention, social protection, redistribution via social transfers and equality, and lower levels of informality.