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

Mario Vozar, Filip Pertold and Pavla Nikolovova

No 8, Discussion Papers from Central European Labour Studies Institute (CELSI)

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: J21 H26 (search for similar items in EconPapers)
Date: 2013-05-31
New Economics Papers: this item is included in nep-iue, nep-lab, nep-lma and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:cel:dpaper:8

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