English title: Labour Protection and Informal Work: A Cross-National Analysis of European Countries, 2004–2012
Author(s): Luz Adriana Flórez - Francisco Perales -
Type: Journal article
Informal work, defined as work that is undertaken without a formal contract, lowers productivity, reduces government tax revenue and hampers economic growth. Thus, reducing informal work is a recognised policy objective in developed and developing countries. Social and economic policy in Europe shifted markedly in recent years, particularly after the emergence of the Global Financial Crisis in 2008. Most reforms involved decreasing the generosity of unemployment benefit schemes and reducing the regulation of employment protection. We argue that, while these reforms may have contributed to reducing unemployment, they might also have had negative consequences, such as the increase of informal work. To test this, we use cross-national European Social Survey data for 2004–2012 augmented with external macro-level variables, and pooled and pseudo-panel regression models. Key findings indicate that labour protection is effective in reducing the prevalence of informal work amongst employees.
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Journal: International labour review (Print)