Share:


Shadow employment in Eastern Europe: practical aspects of evaluation and counteraction

    Marta Kopytko Affiliation
    ; Anna Pazieieva Affiliation
    ; Andrii Khorosheniuk Affiliation
    ; Mykhailo Matviienko Affiliation
    ; Мariya Vinichuk Affiliation

Abstract

The paper outlines the main problems of shadowing of the labor market in Eastern Europe on the example of Ukraine and explores the factors that have a direct impact on them. A comparative analysis of the most widespread methods of tax evasion in Ukraine has been conducted. Using the software package MS Excel and CurveExpert 5.0, a study was made of the dynamics of the population employed in the informal economy during the period from 2001 to 2018; the impact of the level of labor market shadowing on the standard of living of the population of Ukraine, as well as the dynamics of the volume of remittances of labor migrants to Ukraine. The level of employment of the population in the informal sector of the economy is analyzed. It is proposed one of the alternative methods of economical and mathematical nature, with the help of which it is possible to conduct researches of the imbalance of economic systems, the construction of a mathematical model of balance on the basis of modeling of a small group using the graph theory, which will enable to carry out tactical and strategic control over the interaction of the main categories of the population in the labor market.

Keyword : shadow employment, employed in the informal economy, shadow economy, graph theory, economic stabilization, socio-economic development

How to Cite
Kopytko, M., Pazieieva, A., Khorosheniuk, A., Matviienko, M., & Vinichuk М. (2019). Shadow employment in Eastern Europe: practical aspects of evaluation and counteraction. Business: Theory and Practice, 20, 485-491. https://doi.org/10.3846/btp.2019.45
Published in Issue
Dec 17, 2019
Abstract Views
1792
PDF Downloads
519
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Blikhar M, Savchenko L, Komarnytska I, Vinichuk M (2019) Strategic orientaries of legalization of the economy of Ukraine: economic and legal aspects. Financial and Credit Activities: Problems of Theory and Practice 2019 (2): 101-112. https://doi.org/10.18371/fcaptp.v2i29.171850

Cseh Papp I, Bilan S, Dajnoki K (2018) Globalization of the labour market – circular migration in Hungary. Journal of International Studies 12 (2): 182-200.

Dubrovsky V, Cherkashin V (2017) Comparative analysis of fiscal effect from the use of instruments of tax evasion / avoidance in Ukraine. Institute for Socio-Economic Transformation https://rpr.org.ua/wp-content/uploads/2018/02/Instrumenty-uhylyannya-vid-splaty-podatkiv-2017-1.pdf

Fleichuk M, Vinichuk M (2014) Modern trends in the management of the development of organizational and economic systems (a new look): monograph. Simferopol: VD “Arial”.

Fleichuk MI (2008) Legalization of the economy and counteracting corruption in the system of economic security: the theoretical foundations and strategic priorities in the conditions of globalization: monograph. Lviv: Achilles.

Guran I, Gutik O (2008) Mathematics for international economists: A textbook. Kyiv: Knowledge.

Illicit Financial Flows from Developing Countries: 2000–2009 (2009) Global Finacial Integrity Program http://www.gfip.org

Kharazishvili Yu M (2007) Measuring shadow GDP using the functions of cumulative demand and total supply. Economy of Ukraine 1: 57-63.

Kopytko M, Vinichuk M, Veresklya M (2017) Economic-mathematical methods and models in the system of strengthening the social component of Ukraine’s economic security. Financial and credit activity: problems of theory and practice 2017 (2): 302-312. https://doi.org/10.18371/fcaptp.v2i23.121899

Laptev S, Alkema V, Sidak V, Kopytko M (2017) Comprehensive provision of economic security of enterprises: monograph. Kyiv: University of Economics and Law “KROK”.

Medina L, Schneider F (2017) Shadow Economies around the World: New Results for 158 Countries over 1991–2015. CESifo Working Paper Series 6430, CESifo Group Munich https://ideas.repec.org/p/ces/ceswps/_6430.html

National Bank of Ukraine (2018) Recalculation of data on private money transfers to Ukraine in 2015–2017. National Bank of Ukraine Department of Statistics and Reporting Kyiv.

Paľová D, Vejačka M (2018) Analysis of employment in EU According to Europe 2020 Strategy. Targets. Economics and Sociology 11 (3): 96-112. https://doi.org/10.14254/2071-789X.2018/11-3/6

Qerimi Q, Sergi BS (2017) The nature and the scope of the global economic crisis’ impact on employment trends and policies in South East Europe. Journal of International Studies 10 (4): 143-153. https://doi.org/10.14254/2071-8330.2017/10-4/11

Sokolova A, Yurko T, Klimenko V (2017) Current situation and trends of investment activity development in agriculture in Ukraine. Financial and Credit Activity: Problems of Theory and Practice 2 (23): 302-312. Kharkiv. https://doi.org/10.18371/fcaptp.v2i23.122720

Soylu ÖB, Çakmak I, Okur F (2018) Economic growth and unemployment issue: Panel data analysis in Eastern European Countries. Journal of International Studies 11 (1): 93-107. https://doi.org/10.14254/2071-8330.2018/11-1/7

The Ministry of Economy and Economic Development and Trade (2019) Trends in the shadow economy in Ukraine Q1 2018 http://www.me.gov.ua

The State Statistics Service of Ukraine (2019) http://www.ukrstat.gov.ua

The World Bank (2019) http://www.worldbank.org

Varnalij Z (2014) Ways of shadow economy of Ukraine and its peculiarities. Banking 2: 56-66.

Zhalilo Ya, Pokrykhs’ka D, Belinska Ya (2014) Formation of the model of economic development of Ukraine in the post-crisis world. Kyiv: NISS.