Informal
employment is an important problem arising from the informal economic sector.
This arises when employees are undeclared and are not regulated under the rules
which govern the working life. Informal
employment is not only the developing countries main economic problem. It is
also one of the main economic problems of developed countries. Although it
reduces the unemployment, poverty and provides income for certain segments of
the society for a short period of time, it creates a reduction in public
revenue, unfair competition and disruption of recourse distribution which may
be a threat to a country’s socioeconomic stability. Due to the financial losses
it causes and its negative economic and social effects, most countries try to
reduce the rate of informal employment in the economy. In this context it is
advised to remove politics that cause people to turn to informal employment
rather than the informal employment itself. Therefore, instead of giving
importance to one policy, a mixed policy approach should be implemented in a
planned, systematic and decisive manner. While taxes and social security
premiums are reduced and the bureaucratic process related to employment is
shortened, on the other hand, the rules governing the informal employment
should be increased by the governing bodies.
Subjects | Economics |
---|---|
Journal Section | RESEARCH ARTICLES |
Authors | |
Publication Date | August 30, 2017 |
Published in Issue | Year 2017 Volume: 1 Issue: 1 |