IDENTIFYING THE ENVELOPE WAGES PHENOMENON BASED ON LFS AND SES DATA SETS – EVIDENCE FROM POLAND

This paper deals with the problem of identifying envelope wages based on the Labour Force Survey (LFS) and the Structure of Earnings Survey (SES). The research samples have been adjusted so that the distribution of individuals in both databases is the same. The maximum likelihood method is used and...

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Bibliographic Details
Published inEconomics & sociology Vol. 16; no. 4; pp. 130 - 154
Main Authors Grabowski, Wojciech, Korczak, Karol
Format Journal Article
LanguageEnglish
Published Ternopil Centre of Sociological Research (NGO) 01.10.2023
Subjects
Differentiation
Earnings
Employees
Employers
Employment
GNP
Gross National Product
Hypotheses
Informal economy
Labor costs
Labor force
Labor market
Labor productivity
Literature reviews
Maximum likelihood method
Research methodology
Socioeconomic status
Taxation
Wages & salaries
Poland
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Summary:This paper deals with the problem of identifying envelope wages based on the Labour Force Survey (LFS) and the Structure of Earnings Survey (SES). The research samples have been adjusted so that the distribution of individuals in both databases is the same. The maximum likelihood method is used and the parameters of multilevel models that explain wages are estimated. Theoretical wages for selected workers groups are calculated. Based on differences between the theoretical wages of individuals from the LFS and SES databases, a measure associated with envelope wages is calculated. The novelty of this study lies in providing a new method for evaluating the phenomenon of envelope wages. The analysis indicates that various features of the employees and enterprises significantly affect the propensity to receive an envelope wage. This propensity is also strongly determined by affiliation to a NACE section. Regional differentiation of the propensity to receive envelope wages was also identified. This problem is urgent in light of the negative demographic tendencies in Poland and similar countries of the Central and Eastern Europe that lead to an intensified competition for employees. However, cost competition does not allow for significant increases of labour costs. Therefore, fiscal autiiorities in Poland and similar countries should retiiink their taxation policies.
ISSN:2071-789X
2306-3459
DOI:10.14254/2071789X.2023/16-4/6