This paper analyzes, using country-level panel data from transition economies and Latin America, the impact of labor market institutions on informal economic activity. The measure of informal economic activity is taken from Schneider et al. (2010), the most comprehensive study to date. The data...

One challenge in transition economies has been to avoid being caught between overrapid restructuring (harmful to the private sector) and gradual change (can undermine robust private sector emergence). Empirical evidence suggests that in most of Eastern Europe and the former Soviet Union,...