Self-employment and Small Workplaces in the Czech and Slovak Republics: Microeconometric Analysis of Labor Force Transitions

Pavla Nikolovova (), Filip Pertold () and Mario Vozar ()
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Pavla Nikolovova: CERGE-EI
Filip Pertold: CERGE-EI
Mario Vozar: CERGE-EI

No 402132, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: In this paper we investigate the role of the business cycle for the transitions of Czech and Slovak workers to informal economy using Czech and Slovak Labor Force Survey data. We use two approximations for the participation in informal economy, self-employment and employment in small workplace (10 and fewer workers or 5 and fewer workers). Both statuses are potentially associated with the participation in an informal economy. Using the similar methodology as presented in Bosh and Maloney (2007), we show that recent recession caused substantial increase in transitions of workers from formal into both self-employment and employment. As compare to pre-recession time the flow into self- increased more than 4 times. The increase in transitions to small workplaces is less pronounced.

Keywords: informal economy; business cycle; labor force (search for similar items in EconPapers)
JEL-codes: H26 J21 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2014-07
New Economics Papers: this item is included in nep-iue and nep-tra
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Published in Proceedings of the Proceedings of the 2nd Economics & Finance Conference, Vienna, Jul 2014, pages 403-439

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:0402132

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