Assessment of Informal Employment in Georgia
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Washington, DC: World Bank
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Labor informality is a policy concern in Georgia and other developing countries. International evidence suggests that economies associated with high informality are characterized with higher levels of inequality, lower productivity, higher levels of poverty, and lower levels of human and physical capital, reducing the prospects for long-term economic growth. This report focuses primarily on non-agricultural informal employment in Georgia, as defined by Geostat. The analysis in this report is built around the drivers and motivators of non-agricultural informal employment in Georgia. The report's analysis has several limitations that warrant future research. In addition, due to data limitations, own-account and self-employed individuals are not included in the wage gap analysis, which could otherwise offer a more comprehensive view of the motivators and effects of informal employment. Understanding the behavioral factors, as well as the role of the welfare programs influencing informality can also provide further insights into this phenomenon.
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LABOR INFORMALITY, NON-AGRICULTURAL INFORMALITY, POVERTY AND INEQUALITY, REGULATIONS ENHANCEMENTS