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Public Economics

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Labour Economics

2011

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Employed Unemployed? On Shadow Employment In Transition, Joanna Tyrowicz, Stanisław Cichocki Jan 2011

Employed Unemployed? On Shadow Employment In Transition, Joanna Tyrowicz, Stanisław Cichocki

Joanna Tyrowicz

Unregistered employment poses two types of challenges to the researchers: (i) reliably evaluating the wage dierential between formally and informally employed and (ii) accounting for the push and pull factors in general and the eects of business cycle in particular. We address the former with the use of propensity score matching and analyse the evolution of the estimated average compensations and the dierentials with reference to GDP and unemployment fluctuations. Using 13 years of quarterly labour force survey data from Poland on de iure unemployed but de facto employed individuals we nd, that in-the-shadow compensations tend to be higher and ...