Granular examination of the informal economy in North Macedonia: Insights into informal workers, undeclared work and income underreporting in households

Srbinoski, Bojan and Petreski, Blagica and Petreski, Marjan (2024) Granular examination of the informal economy in North Macedonia: Insights into informal workers, undeclared work and income underreporting in households. In: Finance Think Policy Studies.

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Abstract

The informal economy stands as a substantial yet elusive aspect of many developing economies. In North Macedonia, governmental efforts to curb this issue have been ongoing, with strategies outlined in initiatives like the Strategy for Formalization of Informal Economy 2023-2027 and the Public Revenue Office’s Strategic Plan 2023-2025. However, the true extent of the informal economy remains a challenge to ascertain due to its multifaceted nature. Existing indirect estimation methods, while valuable, fail to offer a granular view necessary for informed policymaking. In response, this study provides insights into three specific dimensions of North Macedonia’s informal economy: informal workers, undeclared work and household income underreporting. Leveraging data from the Labour Force Survey 2022 and structural business statistics, alongside the Survey of Income and Living Conditions (SILC) 2018, we implement the Labour Input Method (LIM) to measure the extent of undeclared work and a consumption-based approach to measure underreported income. Informal workers are depicted based on their self-identification in LFS. These approaches enable us to delve into the complexities of the informal economy, providing insights into its prevalence and importance within the Macedonian economy.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Prof. d-r Bojan Srbinoski
Date Deposited:	06 Jun 2024 09:48
Last Modified:	06 Jun 2024 09:48
URI:	https://eprints.uklo.edu.mk/id/eprint/10040

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