Search

The informal economy, often characterized by unregulated and untaxed economic activities, has significant yet understudied implications for sustainable development and inclusivity. This paper explores the influence of the size of the shadow economy and undeclared work patterns (envelope wage, without a formal contract and bogus self-employed) on the Leave No One Behind Index and the Sustainable Development Index developed by the United Nations across European countries from 2000 to 2021. Employing panel data regression models, the research investigates the differential impacts of informality on these indices, revealing a negative correlation with the informal economy and a positive association with various forms of undeclared work. The analysis, comprising 18 models segmented by region – Central and Eastern Europe, Western Europe, and Europe – demonstrates that the adverse effects of the informal economy are more pronounced, whereas the positive contributions of undeclared work patterns are subtler, yet significant. The study’s findings suggest a complex interaction between informal economic activities and sustainable development goals, challenging the conventional perspective on informality and its role in inclusive development. The results indicate that while the shadow economy may hinder broad development efforts, informal labor arrangements support vulnerable populations, underscoring the need for nuanced policy interventions that recognize the multifaceted nature of work and its impacts on development.

The informal economy, often characterized by unregulated and untaxed economic activities, has significant yet understudied implications for sustainable development and inclusivity. This paper explores the influence of the size of the shadow economy and undeclared work patterns (envelope wage, without a formal contract and bogus self-employed) on the Leave No One Behind Index and the Sustainable Development Index developed by the United Nations across European countries from 2000 to 2021. Employing panel data regression models, the research investigates the differential impacts of informality on these indices, revealing a negative correlation with the informal economy and a positive association with various forms of undeclared work. The analysis, comprising 18 models segmented by region – Central and Eastern Europe, Western Europe, and Europe – demonstrates that the adverse effects of the informal economy are more pronounced, whereas the positive contributions of undeclared work patterns are subtler, yet significant. The study's findings suggest a complex interaction between informal economic activities and sustainable development goals, challenging the conventional perspective on informality and its role in inclusive development. The results indicate that while the shadow economy may hinder broad development efforts, informal labor arrangements support vulnerable populations, underscoring the need for nuanced policy interventions that recognize the multifaceted nature of work and its impacts on development. [ABSTRACT FROM AUTHOR]

The paper aims to investigate if the activity sector matters in explaining and analysing the job satisfaction, its determinants and also the satisfaction related to the performance evaluation process using an empirical research based on gender differences for a sample of 301 employees from seven sectors of activity. The paper aims to respond to the following key research questions: there are statistical differences concerning the job satisfaction and also the perceptions regarding the performance evaluation process in different sectors of activity with certain specificities?. In order to respond to these questions, descriptive statistics, non-parametric correlation and non-parametric tests (Kruskal-Wallis) were used. The empirical results revealed that employees from services, manufacturing industry and agriculture exhibited the highest level of job satisfaction while constructions represents the sector with the lowest level. The analysis of motivational factors revealed that workplace comfort and job stability are considered to be the most important motivating factors in all sectors of activity, while the perspective of hierarchical advancement and logistical support the least motivating. The results of Kruskal-Wallis test pointed out statistical differences among sectors of activity regarding the job satisfaction level and the attractiveness of work done. Concerning the level of satisfaction related to the last employee evaluations, retail trade and manufacturing industry are the sector with the highest degree of satisfaction while services and wholesale trade registered lower levels of satisfaction. As methods used in the evaluation, the analysis based on the superiors' opinion was used in all sectors with the exception of agriculture characterized by the presence of informal free talks. The empirical results highlighted significant differences in different sectors of activity regarding the elements taken into consideration in the employee performance evaluation process: productivity, initiative/innovation, quality of communication, relationships with subordinates, superiors and customers and professional development. [ABSTRACT FROM AUTHOR]

The field of eco-innovation is included in the area of sustainable development being closely related with ecological planning. In this context, this paper aims to evaluate Romanian eco-innovation performance during the period 2003-2013 by constructing a composite index and to also identify the main eco-innovation poles at the European level using multidimensional analysis techniques based on the eco-innovation specific indicators for the year 2013. This approach used the methodology of constructing composite indices proposed by Organization for Economic Co-operation and Development (OECD) in 2008. The index measured the eco-innovation dimensions in 27 countries over the period 2003-2013. The empirical analysis revealed the conclusion that in Romania, the eco-innovation level is low compared with other countries, thus Romania cannot emphasize its eco-innovation performance. The empirical results of the study highlighted that eco-innovation represents a phenomenon leading to significant progress in achieving the objective of sustainable development in Romania, and also at the European level, only if the importance of this area is awarded and eco-innovation measures are enforced through adequate policies, leading to economic growth. [ABSTRACT FROM AUTHOR]

The paper aims to analyze the unidirectional relationship from active ageing phenomena to the size of the Romanian shadow economy in order to see if the unofficial sector represents a social buffer for older workers who have lower labor market opportunities. In order to do that, we applied two important causality analyses, Granger and Toda-Yamamoto, based on quarterly data over the period 2000-2010. The size of the Romanian shadow economy was previously estimated using a revised version of the currency demand approach based on autoregressive distributed lag (ARDL) approach. For active ageing, the employment rate for older workers was used as proxy. The cointegration empirical results highlight the existence of a positive long-run relationship between employment rate of elderly and unofficial sector. The empirical causality results conclude that there is a unidirectional Granger causality that runs from employment rate of older workers to shadow economy both on long-run and short-run. The empirical results of Toda-Yamamoto revealed the absence of a short-run causal relationship from employment rate for older workers to the size of shadow economy. One possible explanation for the existence of a positive relationship that runs from employment rate of elderly to unofficial sector can be the low capacity of the economy to generate proper jobs, so this age group of older workers does not have qualifications that meet the needs of formal economy, and therefore shadow economy becomes an alternative to formal work and it may provide a buffer for some workers who have few alternative labor market opportunities. Another alternative could be the fact that this age group of elderly remains occupied in the formal lab our market, but with low earnings and they work in informal activities in order to supplement their income. [ABSTRACT FROM AUTHOR]

The paper aims to investigate the nature of the relationship between the shadow economy (SE) and recorded GDP for the case of Romania using Pesaran et al.(2001) bounds tests approach for cointegration for the period 2000-2010. The size of Romanian shadow economy is estimated using a revised version of the currency demand approach based on autoregressive distributed lag (ARDL) approach to cointegration analysis. To investigate the long-run causal linkages and short-run dynamics between shadow economy and recorded GDP, ARDL cointegration approach is applied. The ARDL causality results revealed only the existence of a long-run unidirectional causality that runs from shadow economy official economy, revealing a negative relationship betwwen them on long-run. In addition, the CUSUM and CUSUMSQ tests confirm the stability of causal relationships. [ABSTRACT FROM AUTHOR]

The paper analyses the relationship between shadow economy and unemployment rates using a Structural VAR approach for quarterly data during the period 2000-2010. The size of Romanian shadow economy is estimated using the currency demand approach based on VECM models, stating that its size is decreasing over the analyzed period, from 36.5% at the end of 2000 to about 31.5% of real GDP at the middle of 2010. The relationship between the variables is tested by imposing a long-run restriction in the Structural VAR model to analyze the impact of the shadow economy to a temporary shock in unemployment. The accumulated responses generated by a positive supply shock (unemployment rate) confirms that in the short-run, a rise in both registered and ILO unemployment rates in formal sector will lead to a decrease in the number of people who work in the shadow economy in the second quarter following the initial shock and to an smaller increase in the size of the Romanian shadow economy in the third quarter following the initial shock. [ABSTRACT FROM AUTHOR]