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Causes of Option for Informal Sector

Author

Listed:
  • Cristian MARINESCU

    (The Bucharest University of Economic Studies)

  • Alina BRATILOVEANU

    (Valahia University of Targoviste)

Abstract

Informality is a feature, specific to any economy, regardless its nature and development degree, but it has a significant share in developing or poorly developed economies. In this paper we aim to present the causes determine individuals to opt for informality, whether we are talking about the workforce, or we are talking about entrepreneurs or small companies. Therefore, in this paper we will identify what kind of causes determine the labor force (the employees) to opt for informal employment or employment in the informal sector and also what causes determine the entrepreneurs and firms to opt for the informal sector of the economy. We will also try to establish whether the choice for the informal sector of the economy is a rational decision or is an irrational behavior of individuals.

Suggested Citation

  • Cristian MARINESCU & Alina BRATILOVEANU, 2020. "Causes of Option for Informal Sector," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 21(1), pages 86-95, March.
    • Handle: RePEc:rom:rmcimn:v:21:y:2020:i:1:p:86-95
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    : informal sector; informal employment; dual economy; employment in the informal sector.;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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