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Effects of informality in Albania's small enterprises

Author

Listed:
  • Brunilda Muca

    (Faculty of Economy and Agribusiness, University of Tirana, Albania)

  • Galantina Doraci

    (Faculty of Economy and Agribusiness, University of Tirana, Albania)

Abstract

Employment is a major concern for Albania, while it transitioned from a centralized economy to a market economy. Labor conditions are an important factor of showcasing the economic wellbeing of the country as a whole. The main concern regarding the labor market is tied to the effects informal employment brings in the economy. Informality in Albania may be as high as 50 percentS of its official Gross Domestic Product, or even higher. When manifested in the economic sphere, informality plays a critical role for creation of jobs and reduction of poverty. Seizing informal economy and especially in the labor market is no easy task. But when achieved it provides visibility to those employed by the sectors, and the contribution they bring to the economy. Informality in the labor market mirrors informality in economy. The paper will focus on effects of employment in the Albanian informal economy, and provide results on a survey held in one of its capital main streets, targeting small businesses.

Suggested Citation

  • Brunilda Muca & Galantina Doraci, 2013. "Effects of informality in Albania's small enterprises," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 6(2), pages 180-190, December.
    • Handle: RePEc:rse:wpaper:v:6:y:2013:i:2:p:180-190
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    References listed on IDEAS

    as
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    3. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
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    More about this item

    Keywords

    informality; nonofficial economy; economic crises; labor market;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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