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Undeclared work as a new normality globally and in Ukraine

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  • Kostrytsya V., Burlai T.

Abstract

The article describes the modern understanding of the category of "new normality" in the field of employment, including its informal segment. In the economic discourse of the problems of informal employment, the authors indicate two meanings of the category "new normality": the first one characterizes informal employment as a new objective norm (as a characteristic, widespread, and stable phenomenon) of the present and the future; and the second one reflects the transformation of the sphere of employment, including its undeclared segment, in the process of creating a "new normality" under the influence of demographic changes, globalization, digitalization and other global trends. Analyzed the main global trends contributing to the normalization of informal employment in modern macroeconomic development. Particular attention is paid to the trend of digitalization and significant social challenges due to its spread, first of all, the narrowing of the field of social and labor relations, the growth of unemployment, and the spread of informal employment. Established the factors that determine undeclared labor activity as a new norm of functioning of the global labor market. The authors substantiate the key systemic risks of transforming a high level of undeclared work into a "new normality" of Ukraine's social and economic development. They include structural degradation of the national economy; demographic limitation for the potential of long-term economic growth; general institutional weakness and the strengthening of destructive institutions; high imbalance in the professional structure of labor demand and supply; and a significant deficit of decent work. One of the priorities of the national policy of state regulation should be the development of mechanisms to counteract and minimize the influence of the above mentioned five systemic factors, which would lead to the transformation of undeclared work in Ukraine into a "new normality" of its socio-economic progress.

Suggested Citation

  • Kostrytsya V., Burlai T., 2019. "Undeclared work as a new normality globally and in Ukraine," Economy and Forecasting, Valeriy Heyets, issue 1, pages 7-34.
    • Handle: RePEc:eip:journl:y:2019:i:1:p:7-34
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    References listed on IDEAS

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    2. World Bank, 2019. "World Development Report 2019 [Rapport sur le développement dans le monde 2019]," World Bank Publications - Books, The World Bank Group, number 30435.
    3. Dominik H. Enste, 2018. "The shadow economy in industrial countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, November.
    4. Beegle,Kathleen G. & Benjamin,Nancy Claire & Recanatini,Francesca & Santini,Massimiliano, 2014. "Informal economy and the World Bank," Policy Research Working Paper Series 6888, The World Bank.
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