Objective: To develop and apply a methodology for evaluating informal employment at regional and county levels in Romania. This project supports informed decision-making for labour market policies, particularly regarding informal employment dynamics, utilising discrepancy and labour force-based methods.

Methodology:
The project employs two primary methods to estimate informal employment:

• Discrepancy Method: This approach identifies informal employment by comparing labour data from the Household Labor Force Survey (AMIGO) with data from the Labor Cost Survey. Differences help estimate the number of informal workers across various regions and economic sectors.
• Labour Force Method: This method assumes that the official labour participation rate remains constant. Any deviations are attributed to informal economic activity. Adjustments in employment rates provide insights into the scale of informal employment.

Project Manager: Davidescu Adriana Ana Maria

Period: March 2015 – December 2015

Key Findings:

• Regional Informal Employment Estimates: Estimated informal employment by reconciling discrepancies between administrative and survey-based labor data, providing regional and county-level insights.
• Identification of Informal Economic Hubs: Highlighted regions and economic activities with significant informal employment presence, facilitating targeted policy interventions.
• Comparative Analysis by Region and Sector: Produced comparative assessments across regions and key sectors, enhancing understanding informal employment patterns.
• Informality Mapping: Developed regional informality maps for visual insights into the geographic spread of informal employment in Romania.

Policy Implications:
The findings support targeted labour market interventions, enabling policymakers to better address informal employment through regional and sectoral strategies. This will assist in formalising jobs and improving economic stability, especially in regions and sectors with high informality.