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The Informal Sector During Crisis and Transition

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  • Ralitza Dimova
  • Ira N. Gang
  • John S. Landon-Lane

Abstract

One of the most notable phenomena during economic transition is the shrinkage of the public sector and expansion of the not working population, simultaneously with the expansion of both the formal and informal private sectors. We address the related labour dynamics of the pre and post 1996 crisis in Bulgaria with the use of a panel constructed from the 1995 and 1997 Bulgarian Integrated Household Surveys and a Markov chain model of job mobility. Our results support the hypothesis of substantial shrinkage of the public sector and movement out of the labour force.

Suggested Citation

  • Ralitza Dimova & Ira N. Gang & John S. Landon-Lane, 2005. "The Informal Sector During Crisis and Transition," WIDER Working Paper Series RP2005-18, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-18
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    References listed on IDEAS

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    Cited by:

    1. Ilhom Abdulloev & Ira N. Gang & John Landon-Lane, 2011. "Migration as a Substitute for Informal Activities: Evidence from Tajikistan," Working Papers 311, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    2. Dimova, Ralitza & Gang, Ira N., 2007. "Self-selection and wages during volatile transition," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 612-629, September.
    3. Dimova, Ralitza & Wolff, François-Charles, 2008. "Are private transfers poverty and inequality reducing? Household level evidence from Bulgaria," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 584-598, December.
    4. Dimova, Ralitza & Gang, Ira N. & Landon-Lane, John, 2011. "Revealed Informal Activity," IZA Discussion Papers 5607, Institute of Labor Economics (IZA).
      • Ralitza Dimova & Ira N. Gang & John Landon-Lane, 2011. "Revealed Informal Activity," Working Papers 296, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    5. S. Sookram & P. K. Watson & F. Schneider, 2009. "Characteristics of households in the informal sector of an emerging economy," Applied Economics, Taylor & Francis Journals, vol. 41(27), pages 3545-3559.
    6. Yuriy Timofeyev, 2013. "The Effects of the Informal Sector on Income of the Poor in Russia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(3), pages 855-866, May.
    7. Farid Gasmi & Dorgyles C. M. Kouakou & Maruf Sanni, 2025. "Firms' sustainable and responsible innovation in Nigeria: Does informality play a role?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 33(1), pages 139-164, January.
    8. Nguyen, Duy Loi & Nguyen, Binh Giang & Tran, Thi Ha & Vo, Thi Minh Le & Nguyen, Dinh Ngan, 2014. "Employment, Earnings and Social Protection for Female Workers in Vietnam’s Informal Sector," MPRA Paper 61989, University Library of Munich, Germany.
    9. Gasmi, Farid & Kouakou, Dorgyles & Sanni, Maruf, 2022. "The effect of firm informality on sustainable and responsible innovation in developing countries: Evidence from Nigeria," TSE Working Papers 22-1368, Toulouse School of Economics (TSE).
    10. Sandra Sookram & Patrick Kent Watson, 2008. "Small-Business Participation in the Informal Sector of an Emerging Economy," Journal of Development Studies, Taylor & Francis Journals, vol. 44(10), pages 1531-1553.
    11. Anna Ruzik & Magdalena Rokicka, 2010. "The Gender Pay Gap in Informal Employment in Poland," CASE Network Studies and Analyses 406, CASE-Center for Social and Economic Research.
    12. Bargain, Olivier & Etienne, Audrey & Melly, Blaise, 2021. "Informal pay gaps in good and bad times: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 693-714.
    13. Agus Joko Pitoyo & Bagas Aditya & Ikhwan Amri & Akbar Abdul Rokhim, 2021. "Impacts and Strategies Behind COVID-19-Induced Economic Crisis: Evidence from Informal Economy," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(3), pages 641-661, September.
    14. Surender Mor & Sonu Madan & Geoffrey R. Archer & Arvind Ashta, 2020. "Survival of the Smallest: A Study of Microenterprises in Haryana, India," Millennial Asia, , vol. 11(1), pages 54-78, April.
    15. Ivanova, Ludmila & Dimitrov, Plamen & Ovcharova, Dora & Dellava, Jocilyn & Hoffman, Daniel J., 2006. "Economic transition and household food consumption: A study of Bulgaria from 1985 to 2002," Economics & Human Biology, Elsevier, vol. 4(3), pages 383-397, December.

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