Theoretical and Applied Economics
No. 4 / 2024 (641), Winter
The hidden economy revealed: profiling informal workers through random forest classification
Bucharest University of Economic Studies, Romania
Adriana AnaMaria DAVIDESCU
Bucharest University of Economic Studies, Romania
National Scientific Research Institute for Labour and Social Protection Bucharest, Romania
Eduard Mihai MANTA
Bucharest University of Economic Studies, Romania
Marina-Diana AGAFITEI
Bucharest University of Economic Studies, Romania
National Scientific Research Institute for Labour and Social Protection Bucharest, Romania
Abstract. The phenomenon of informality, in all three of its forms: envelope wages, dependent workers, and workers without formal contracts, represents a complex aspect of the modern economy, having significant impact on regional development and society. The main objective of this study is to understand this phenomenon in both microeconomic and macroeconomic contexts, exploring the interactions between individual and structural factors that influence the evolution and scale of the informal economy across different regions. While the classical approach typically involves multilevel models to analyse such data, this study employs the Random Forest method due to its ability to handle data complexity and variability efficiently and robustly. The profile of informal workers, regardless of their employment form (no formal contract, envelope wages, or dependent workers), reveals both common traits and notable differences. While all share low fiscal morality, extended social networks, and a general distrust of authorities, they differ significantly in terms of company size, demographics, and political inclination, highlighting the complexity and diversity of informal labour and the need for tailored approaches to address these workers.
Contents
Digitalization and innovation: a regional perspective on their interaction
Assessing the macroeconomic challenges in Romania after the economic and financial crisis
Green finance and innovation input: the promoters of carbon neutrality in China
A simple model of online marketing, production, profit and growth
The relationship of digital payments, macroeconomic variables, and banking stability in developing Asia
Modelling the relationship between inflation and uncertainty with existence of structural break: evidence from Azerbaijan
Analysis of the global energy resources evolution in the context of the population growth
Assessing the impact of energy and macroeconomic shocks on the Romanian economy: a Bayesian VAR approach
Two faces of the same coin: integrated perspectives of public and private debt on the effects of interdependence on financial stability
Institutional quality and sustainability: empirical study in 11 MENA countries
The effect of population ageing on savings: a time series analysis for Türkiye
Workplace economics – How does the Impostor Syndrome affect organisational output?
COVID-19 and the labour market: regional shifts of human capital working in technology and employment
Validity of the environmental Kuznets Curve in Bangladesh under the role of financial development
The impact of doing business indicators on economic growth in emerging market economies: a cross-sectional analysis
The essential role of U.S.-China tensions: a fresh insight into the gold market
The dispersion of poverty in some Romanian rural areas – good examples of rural localities with the lowest poverty rates
The stability and Growth Pact in Practice: inefficiencies of previous debt rules and the way forward
Leaders in disguise: power, perception, and paradox – economics and the fragile authority of politicians
Investigating the corporate debt and real investment nexus: dynamics and challenges in a shifting financial landscape
The hidden economy revealed: profiling informal workers through random forest classification
The impact of oil price shocks on economic growth in Algeria
The determinants of political instability: the role of mining resources
Quantitative easing and its implications for contingent convertible triggers: an analytical perspective