Eliciting permanent and transitory undeclared work from matched administrative and survey data

Péter Elek and Janos Kollo ()
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Janos Kollo: Centre for Economic and Regional Studies, Hungarian Academy of Sciences

No 1605, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: We study the undeclared work patterns of Hungarian employees in relatively stable jobs, using a panel dataset that matches individual-level self-reported Labour Force Survey (LFS) data with administrative data from the Pension Directorate for 2001–2006. We estimate the determinants of undeclared work using Heckman-type random-effects panel probit models, and develop a two-regime model to separate permanent and transitory undeclared work, where the latter follows a Markov chain. We find that about 6 per cent of workers went permanently unreported for six consecutive years, and a further 3-4 per cent were transitorily unreported in any given year. By simulating the permanent and transitory components of undeclared work, we examine the implications for health and pension eligibility.

Keywords: undeclared work; labour input method; matched administrative-survey data; random-effects panel probit model with endogenous selection; Markov chain (search for similar items in EconPapers)
JEL-codes: C23 C25 H26 J46 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016-06
New Economics Papers: this item is included in nep-iue
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Eliciting permanent and transitory undeclared work from matched administrative and survey data (2019)
Working Paper: Eliciting Permanent and Transitory Undeclared Work from Matched Administrative and Survey Data (2017)
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