Portal de Periódicos da CAPES

Effects of informality on Albania s labor market

2012; Volume: 4; Issue: 2 Linguagem: Inglês

2247-6172

Brunilda Muça, Sajmir Hoxha, Galantina Doraci,

Economic theories and models

With the growing interest on the size of informal economy in Albania, an important concern remains the best ways to reduce its dimension. According to scholars of the field, informality in Albania may be as large as 50 percent of its official GDP, or even higher. A reflection of informality in economy is also displayed by informality in the labor market. The socio-economic changes of the late last century, along with other changes, brought about a high rate of unemployment. The effects of unemployment in Albania s informal economy will be discussed, and one of the methods used for its measure, as well as pinpoint to important lessons drawn when employers and employees are faced with one another. The aim of this paper is to focus on the reduction of informal economy, as seen through labor market lens, as an anti-crisis factor.