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Estimation of the size of informal employment based on administrative records with non‐ignorable selection mechanism

Abstract

In this study, we used company level administrative data from the National Labour Inspectorate and The Polish Social Insurance Institution in order to estimate the prevalence of informal employment in Poland in 2016. Since the selection mechanism is non‐ignorable, we employed a generalization of Heckman’s sample selection model assuming non‐Gaussian correlation of errors and clustering by incorporation of random effects. We found that 5.7% (4.6%, 7.1%; 95% CI ) of registered enterprises in Poland, to some extent, take advantage of the informal labour force. Our study exemplifies a new approach to measuring informal employment, which can be implemented in other countries. It also contributes to the existing literature by providing, to the best of our knowledge, the first estimates of informal employment at the level of companies based solely on administrative data

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Category:
Articles
Type:
artykuły w czasopismach
Published in:
JOURNAL OF THE ROYAL STATISTICAL SOCIETY SERIES C-APPLIED STATISTICS no. 70, pages 667 - 690,
ISSN: 0035-9254
Language:
English
Publication year:
2021
Bibliographic description:
Berȩsewicz M., Nikulin D.: Estimation of the size of informal employment based on administrative records with non‐ignorable selection mechanism// JOURNAL OF THE ROYAL STATISTICAL SOCIETY SERIES C-APPLIED STATISTICS -Vol. 70,iss. 3 (2021), s.667-690
DOI:
Digital Object Identifier (open in new tab) 10.1111/rssc.12481
Verified by:
Gdańsk University of Technology

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