Search results

1 – 10 of 40
Article
Publication date: 5 July 2021

Josip Franic and Stanislaw Cichocki

In spite of millions of quasi-formal workers in the European Union (EU), there is still limited understanding of what motivates workers to participate in these detrimental…

Abstract

Purpose

In spite of millions of quasi-formal workers in the European Union (EU), there is still limited understanding of what motivates workers to participate in these detrimental employment schemes, and why certain groups of workers exhibit higher inclination towards it. This article takes a novel approach by putting prospective envelope wage earners in the centre of this analysis.

Design/methodology/approach

Data from the 2019 Special Eurobarometer on undeclared work are used, and two-level random intercept cumulative logit modelling is applied.

Findings

One in seven fully declared EU workers would have nothing against receiving one part of their wages off-the-books. Manual workers and individuals whose job assumes travelling are the most willing to accept such kind of remuneration, and the same applies to workers with low tax morale and those who perceive the risk of being detected and persecuted as very small. On the other hand, women, older individuals, married persons and employees from large enterprises express the smallest inclination towards envelope wages. The environment in which an individual operates also plays a non-negligible role as the quality of the pension system and the strength of social contract were also identified as significant determinants of workers' readiness to accept envelope wages.

Originality/value

This article fills in the gap in the literature by analysing what workers think about wage under-reporting and what factors drive their willingness to accept envelope wages.

Details

Employee Relations: The International Journal, vol. 44 no. 1
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 2 March 2021

Colin C. Williams and Gamze Oz-Yalaman

The temporary enforced closure of businesses in response to the coronavirus pandemic has resulted in governments in Europe and beyond offering short-term financial support to the…

Abstract

Purpose

The temporary enforced closure of businesses in response to the coronavirus pandemic has resulted in governments in Europe and beyond offering short-term financial support to the businesses and workers affected. The purpose of this paper is to evaluate a group of workers unable to benefit from the short-term job retention schemes and support to the self-employed made available by governments, namely, those whose paid work is comprised wholly of undeclared work, and how this could be addressed.

Design/methodology/approach

To identify those whose paid work is entirely undeclared, a Eurobarometer survey of undeclared work in Europe is reported conducted in September 2019, just prior to the pandemic, and involving 27,565 face-to-face interviews in 28 European countries.

Findings

The finding is that the paid work of one in every 132 European citizens is comprised wholly of undeclared work, and these workers are concentrated in non-essential businesses and activities severely affected by the lockdown. These workers whose paid work is comprised wholly of undeclared work are significantly more likely to be widowed or divorced/separated, living in households with three or more adults, without children and most of the time have financial difficulties in making ends meet.

Practical implications

Given that businesses and workers in the undeclared economy are largely unable to work under lockdown, it is argued that providing access to short-term financial support, through a regularisation initiative based on voluntary disclosure, would not only provide the income support these workers need but also bring them out of the shadows and put them on the radar of the state authorities, thus transforming undeclared work into declared work.

Originality/value

This paper shows how in the current or repeat lockdowns, the short-term financial support made available by governments can be used to transform undeclared work into declared work.

Details

Employee Relations: The International Journal, vol. 43 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 17 October 2010

Colin C. Williams and Sara Nadin

A dominant belief is that the continuing encroachment of the market economy into everyday life is inevitable, unstoppable and irreversible. Over the past decade, however, a small

Abstract

Purpose

A dominant belief is that the continuing encroachment of the market economy into everyday life is inevitable, unstoppable and irreversible. Over the past decade, however, a small stream of thought has started to question this commercialization thesis. This paper seeks to contribute to this emergent body of thought by developing a “whole economy” approach for capturing the multifarious economic practices in community economies and then applying this to an English locality.

Design/methodology/approach

A survey conducted of the economic practices used by 120 households in a North Nottinghamshire locality in the UK is reported here, comprising face‐to‐face interviews in an affluent, middle‐ranking and deprived neighborhood.

Findings

This reveals the limited commercialization of everyday life and the persistence of a multitude of economic practices in all neighborhood‐types. Participation rates in all economic practices (except one‐to‐one unpaid work and “off‐the‐radar” unpaid work) are higher in relatively affluent populations. Uneven development is marked by affluent populations that are “work busy”, engaging in a diverse spectrum of economic practices conducted more commonly out of choice, and disadvantaged populations that are more “work deprived”, conducting a narrower array of activities usually out of necessity.

Research limitations/implications

This snapshot survey only displays that commercialization is not hegemonic. It does not display whether there is a shift towards commercialization.

Social implications

Recognition of the limited encroachment of the market opens up the future to alternative possibilities beyond an inevitable commercialization of everyday life, intimating that the future will be characterized by the continuing persistence of multifarious economic practices rather than market hegemony.

Originality/value

The paper provides evidence from a western nation of the limited commercialization of daily life.

Details

Foresight, vol. 12 no. 6
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 31 May 2021

Colin Williams and Besnik Krasniqi

To transcend the view of employment as either formal or informal, this paper evaluates the prevalence of quasi-formal employment where formal employers pay formal employees an…

Abstract

Purpose

To transcend the view of employment as either formal or informal, this paper evaluates the prevalence of quasi-formal employment where formal employers pay formal employees an unreported (“envelope”) wage in addition to their formal reported salary. To explain the individual-level variations in quasi-formal employment, the “marginalisation” thesis is evaluated that this practice is more prevalent among vulnerable groups and to explain the country-level variations, and a neo-institutionalist theory is evaluated that it is more prevalent where formal institutional failures lead to an asymmetry between the formal laws and regulations and the unwritten socially shared rules of informal institutions.

Design/methodology/approach

To evaluate the individual- and country-level variations in the prevalence of quasi-formal employment, a multi-level logistic regression is provided of data from special 2019 Eurobarometer survey 92.1 involving 11,793 interviews with employees across 28 European countries (the 27 member states of the European Union and the United Kingdom).

Findings

Of the 3.5% of employees (1 in 28) who receive under-reported salaries, the marginalisation thesis is supported that it is largely vulnerable population groups. So too is the neo-institutionalist explanation that quasi-formal employment is more common in countries where the non-alignment of formal and informal institutions is greater, with the formal institutional failings producing this identified as lower levels of economic development, less modernised state bureaucracies and lower levels of taxation and social protection.

Practical implications

The policy implication is that tackling quasi-formal employment requires not only enforcement authorities to improve the risk of detection of this illegal wage practice but also governments to change wider macro-level structural conditions. These are outlined.

Originality/value

Contemporary new evidence is provided of the prevalence of quasi-formal employment along with how this illegal wage practice can be explained and tackled.

Details

International Journal of Social Economics, vol. 48 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 5 June 2017

Colin C. Williams and Aysegul Kayaoglu

Until now, there has been scant evidence on the proportion and characteristics of employees working without a written contract or terms of employment. To begin to fill this gap…

Abstract

Purpose

Until now, there has been scant evidence on the proportion and characteristics of employees working without a written contract or terms of employment. To begin to fill this gap, the purpose of this paper is to evaluate the prevalence and distribution of employees without written contracts or terms of employment in the European Union (EU), examining whether they are unevenly distributed across countries and EU regions, and whether it is vulnerable population groups who are more likely to be without such written contracts.

Design/methodology/approach

A 2013 Eurobarometer survey comprising 11,025 face-to-face interviews with employees in the 28 member states of the EU (EU-28) is reported.

Findings

The finding is that it is less socio-demographic and socio-economic characteristics, and more firm size, institutional environment and spatial factors that are important in explaining the prevalence of employment without a written contract. Thus, governments should address not individuals but rather the formal institutional failings and asymmetry between civic and state morality, in order to reduce the level of employment without a written contract, and focus their attention on smaller firms, larger towns and Southern European countries, especially Cyprus, Malta and Portugal.

Research limitations/implications

Future research needs to evaluate whether and how the conditions of employment (e.g. wage rates, health and safety conditions, holiday entitlements) of employees without written contracts or terms of employment differ to their equivalents who have written contracts or terms of employment. This will reveal the implications of workers not being issued with written contracts or terms of employment.

Originality/value

This is one of the first extensive evaluations of the prevalence and distribution of employees without written contracts or terms of employment.

Details

Employee Relations, vol. 39 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 11 May 2010

Colin C. Williams

The aim of this paper is to move beyond the market/non‐market divide and to recognise the plurality of labour practices in societies by adopting a variant of what Glucksmann calls…

Abstract

Purpose

The aim of this paper is to move beyond the market/non‐market divide and to recognise the plurality of labour practices in societies by adopting a variant of what Glucksmann calls “a total social organisation of labour” approach.

Design/methodology/approach

To transcend the conventional depiction of separate market and non‐market spheres, this paper adopts a total social organisation of labour approach which recognises a multiplicity of labour practices existing on a spectrum from market to non‐market practices crosscut by another spectrum from wholly monetised to wholly non‐monetised practices. This conceptual lens is employed to analyse the results of 861 face‐to‐face interviews on the labour practices used in affluent and deprived urban and rural English localities.

Findings

The outcome is to reveal the multifarious labour practices in these English localities along with how both work cultures and the nature of individual labour practices vary socio‐spatially. While affluent and rural populations draw more on an array of market‐oriented and monetised labour practices, deprived populations and urban localities are found to rely more on a range of non‐market and non‐monetised labour practices, and all labour practices are more likely to be conducted out of necessity in deprived and urban populations and out of choice in affluent and rural populations.

Research limitations/implications

The paper only provides a snapshot survey. It does not show the changes taking place over time.

Practical implications

It reveals how it is mistaken to privilege the development of labour practices in the formal market economy and displays the feasibility of, and possibilities for, alternative futures beyond market hegemony.

Originality/value

The paper transcends the market/non‐market dualism and proposes an alternative conceptual framework to capture the multifarious labour practices in societies.

Details

International Journal of Social Economics, vol. 37 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 30 September 2021

Minna Paunova and Blagoy Blagoev

This chapter examines some of the demographic and socioeconomic factors, as well as cultural and institutional traditions, that help explain turnover and retention in Bulgaria…

Abstract

This chapter examines some of the demographic and socioeconomic factors, as well as cultural and institutional traditions, that help explain turnover and retention in Bulgaria. The case of Bulgaria illustrates that extant theories of turnover and retention may not be well suited to account for macroeconomic and large-scale social processes spurred by globalization. The focus here is on collective turnover at the organizational and particularly at upper levels of analysis (e.g., industry, region), and the authors emphasize four factors that they believe jointly contribute to the high levels of turnover in the country, namely (1) globalization processes affecting the country’s demography (i.e., mass international migration), (2) the economy (i.e., global labor arbitrage), (3) institutions (i.e., patchwork capitalism), and (4) culture (i.e., shifting generational values). To further scholarly progress, management scholars need to be more attentive to turnover – and its determinants – for larger collectives, that is, at levels above the unit and organizational. The authors provide concrete suggestions on how the case of Bulgaria opens up some avenues for future research on turnover and retention.

Details

Global Talent Retention: Understanding Employee Turnover Around the World
Type: Book
ISBN: 978-1-83909-293-0

Keywords

Article
Publication date: 25 May 2021

Colin Williams and Gamze Oz-Yalaman

Until now, most scholars have used one of four competing theories to explain undeclared work. Political economy theories explain undeclared work as resulting from the exclusion of…

Abstract

Purpose

Until now, most scholars have used one of four competing theories to explain undeclared work. Political economy theories explain undeclared work as resulting from the exclusion of workers from formal work and welfare, neo-liberal theories explain such work as a voluntarily chosen rational economic decision and neo-institutionalist and post-structuralist theories explain those engaging as social actors who disagree with the formal rules or seek to help others out respectively. Recognising that each theory focuses upon different employment relationships, this paper evaluates the proposition that these different theories are more explanations of different types of undeclared work.

Design/methodology/approach

To evaluate this, data reported is collected in 2019 across 28 European countries (the 27 member states of the European Union and the United Kingdom) in special Eurobarometer survey 92.1 involving 27,565 interviews.

Findings

Of the 3.6% of citizens participating in undeclared work, 10% engage in undeclared waged employment, 42% in undeclared self-employment and 48% in undeclared paid favours. Reporting their rationales, 7% state purely political economy exclusion-driven reasons, 19% solely neo-liberal rational economic actor reasons, 20% purely social actor reasons and 54% mixed motives. A logistic regression analysis finds those engaging in undeclared waged employment significantly more likely to state purely exclusion-driven rationales, those engaging in undeclared self-employment significantly more likely to state neo-liberal rational economic actor and neo-institutionalist social actor rationales and those engaging in undeclared paid favours post-structuralist social actor motives.

Practical implications

This finding suggests that the policy initiatives required to tackle undeclared work will vary according to the type of undeclared work addressed. These are outlined.

Originality/value

Evidence is provided that a different weighting needs to be given to different theories when explaining each type of undeclared work.

Details

Employee Relations: The International Journal, vol. 43 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 15 January 2024

Tommaso Aguzzi, Rodica Ianole-Calin and Susanne Durst

This paper aims to investigate whether Kazakh small- and medium-sized enterprises (SMEs) that claim to compete with the informal sector are more likely to invest in innovation…

Abstract

Purpose

This paper aims to investigate whether Kazakh small- and medium-sized enterprises (SMEs) that claim to compete with the informal sector are more likely to invest in innovation than their competitors who do not perceive such pressure.

Design/methodology/approach

Logistic regression and classification trees are performed on the Business Environment and Enterprise Performance Survey (2018–2020) to examine whether the degree of informal competition correlates with a firm's propensity to innovate.

Findings

The findings show that informal sector competition is a critical factor that shapes the organizational behaviour of Kazakh SMEs. There is a stimulating positive effect of informal competition on both product and process innovation, depending on its perceived intensity.

Originality/value

This study challenges conventional thinking that still views informal sector competition as a barrier to innovation and entrepreneurship by assessing whether innovation is compatible with informal entrepreneurial practice.

Details

International Journal of Sociology and Social Policy, vol. 44 no. 5/6
Type: Research Article
ISSN: 0144-333X

Keywords

Book part
Publication date: 12 April 2012

Hartmut Lehmann and Konstantinos Tatsiramos

Informality and informal employment are widespread and growing phenomena in all regions of the world, in particular in low and middle income economies. A large part of economic…

Abstract

Informality and informal employment are widespread and growing phenomena in all regions of the world, in particular in low and middle income economies. A large part of economic activity in these countries is not registered or under-declared and many workers enter employment relationships that do not provide any or only partial protection. Causes and consequences of informality in these regions have recently received growing attention, with a particular emphasis on the role of institutions. Several competing paradigms about informality and informal employment exist in the literature. The traditional dualistic view sees the informal segment as the inferior sector, the option of last resort. Due to barriers to entry, minimum wages, unions or other sources of segmentation, formal jobs are rationed. Workers in the informal sector are crowded out from the formal sector involuntarily, their wage being less than that in the formal sector. In contrast, the competitive view sees the formal and informal labor markets not segmented, but integrated. Voluntary choice regarding jobs and particular attributes of these jobs, such as flexible hours, working as a self-employed and being one's own boss as a micro-entrepreneur, and not valuing social security benefits, can be the reasons for remaining in or moving to the informal sector. A third paradigm points to segmentation within the informal sector. Embedding theoretical and empirical analysis of informality and informal employment in low and middle-income countries into the literature helps us to better characterize the labor markets in these countries.

Details

Informal Employment in Emerging and Transition Economies
Type: Book
ISBN: 978-1-78052-787-1

1 – 10 of 40