Informal employment is a widespread phenomenon in Romania and a key challenge for the country’s development. Policies should target two distinct groups: those who voluntarily opt out of the formal system and those with no alternative. Transforming people’s attitudes towards the state and...

This paper provides a fresh look at informal employment, a phenomenon of renewed interest to policy makers and researchers alike. It finds that informal employment is likely to stay, is sometimes a voluntary choice, can offer better working conditions than formal employment and is very...