Informal Employment in the Republic of Moldova: Causes, Consequences and Ways to Combat It
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Automatically translated summary. The full text is available in Romanian.
A study on informal employment in the Republic of Moldova examines the causes and consequences of a phenomenon that has marked the country's labour market throughout the transition period. It focuses on undeclared work and "envelope" wages, and proposes policy measures to reduce them.
The study notes that informal employment has been widespread throughout the transition, but only recently reached the authorities' agenda, once the losses to budget revenues were calculated. Undeclared work and "envelope" wages became widely discussed from summer 2011, when the Action Plan on minimising the practice of paying "envelope" wages and "undeclared work" was approved.
The research aims to identify the real causes of the phenomenon and the factors shaping demand for and supply of informal labour. It also provides calculations of the losses incurred by the state in 2010 and 2011 because of undeclared work and "envelope" wages, and offers policy recommendations for combating informal employment that involves tax evasion.
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