Informality

At the Society for the Advancement of Socio-Economics (SASE) Annual Conference, the Informality Data Research Lab contributed to the academic dialogue on informality through a coordinated set of papers presented within the broader framework of INSEAI Workshop 1 – Theoretical Context on Informal Activity: Conceptual Framework, Informality, and Sustainable Growth Models.

The workshop is part of the International Network for Knowledge and Comparative Socioeconomic Analysis of Informality (INSEAI) — Marie Skłodowska-Curie Actions Project No. 101182756 and was held on 21 November 2025, in hybrid format (in-person and online).

Building on more than five decades of interdisciplinary research, the workshop brought together perspectives from economics, sociology, psychology, law, and anthropology to advance theoretical and empirical understanding of informal activity and its role in sustainable economic growth. Core themes included macroeconomic theories of informality, growth models incorporating informal activity, aggregate micro-informality, and the economic, social, and environmental dimensions of sustainability in high-informality contexts.

Does Informality Alter the Business Cycle? A National Reassessment of Okun’s Law in Colombia

Authors: Eduard Mihai Manta, Marina-Diana Agafiței, Adriana AnaMaria Davidescu, Esteban Nina, Tamara-Maria Nae

This paper revisits Okun’s Law by explicitly integrating the shadow economy into macro-labour modelling for Colombia. Using quarterly data (2005Q2–2025Q2) and an ARDL–ECM framework, the study shows that informality acts as a short-run shock absorber, temporarily reducing unemployment, while becoming a long-run structural constraint that raises equilibrium unemployment by weakening productivity, fiscal capacity, and formal job creation.

Shadow Economy and Sustainable Development: A Multivariate Perspective Using SDG Indicators

Authors: Roberto Dell’Anno, Adriana AnaMaria Davidescu, Eduard Mihai Manta, Cristina-Maria Geambașu, Zouhair Ennaoumi

Using data for 150 countries (2000–2022), this study combines PCA and regression analysis to identify latent dimensions of sustainability. Results show that SDG 8 (Decent Work and Economic Growth) is the strongest negative predictor of informality, while other SDGs such as gender equality, climate action, and responsible consumption exert context-dependent effects. Sustainable development reduces informality only when policies are coherent and institutionally grounded.

Uncovering the Invisible Workforce: Labour Input Method Applied to Romania’s Informal Employment

Authors: Marina-Diana Agafiței, Adriana AnaMaria Davidescu, Tamara-Maria Nae

Applying the Labour Input Method to harmonised Eurostat LFS data, this paper provides consistent long-term quarterly estimates of informal employment in Romania. It traces hidden labour dynamics across EU accession, economic crises, post-crisis recovery, and the emergence of digital and platform work, offering a transparent and replicable monitoring tool for policy analysis.

Bridging Informality, Skills, Regional Performance, and Resilience: An Integrated Literature Review and Policy Insight

Authors: Maria-Bianca Bolboașă, Marina-Diana Agafiței, Adriana AnaMaria Davidescu, Mihai Gheorghe

This integrated review uses PRISMA-inspired bibliometrics, Biblioshiny, and an AI-assisted RAG system to connect informality with skills, regional performance, and resilience. While informality is linked to weaker institutional and educational environments, the literature also identifies its role as a buffer during economic shocks, pointing toward nuanced, context-sensitive policy responses.

Institutional Barriers to Sustainability: The Impact of Informality on ESG Scores in Europe

Authors: Ioana Bîrlan, Adriana AnaMaria Davidescu, Tamara-Maria Nae

Using Propensity Score Matching for 29 European countries (2003–2022), this study identifies a causal negative effect of informality on ESG performance, particularly within the governance pillar. The results show that formalisation is a prerequisite for sustainability, not merely its outcome.

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