Migration, Shadow Economy And Normalization

Migration, Informal Economy and Normalization

Bretones, F. D.; Rodriguez, M.J. & Gonzalez, J.M. (2007)

Integrating New Migrants in New Europe

European Community Psychology Association

II International Seminar. Seville (Spain). September 19th to 21st, 2007


Informal Economy: Definitions

• The sum total of income-earning activities with the exclusion of those that involve contractual and legality regulated employment

• It is unregulated by the institutions of society; in a legal and social environment in witch similar activities are regulated


Marginal Informal Economy

• Entrepreneurship• Illegal o quasi-legal means• Personal work• A networked-based embeddedness• A restrictive institutional environment

(Light, 2004)


Size of the shadow economy (%GNP)

• Developing countries: 35-44%• Transition economies: 20-25%

• Developed– OECD countries: 12%– Spain: 18% – Andalucía: 21,8% (Avila, 1997; Scheniedir and Enste, 2003)

Differences between developed (growth) and less developed (survival) countries


Social factors in informal economy

• Business identity and professional career (Snyder, 2004)

• Limited social networks (Portes et al. 1989, 2004)• Poor language skills and uncertain social reality

/rumor (Harney, 2006)• Family, ethnic, linguistic and cultural ties

Migration and shadow economy in a developed country


Methodology

• 67 questionnaires face-to-face

• 3 focus group (n=22)– Immigrant– Local– Immigrant & Local


Sample


Ethnic business


Activity


Family background


Results: activity and social networks

• Work experience/Business activity (rs=0.189 p=0.078).

• Family activity/Business activity (rs=0.338 p=0.011).

• Social support: friends and family


Results: motives of informalization

Local/Migrants: Limited support• Lack economic resources(t=-1,573 p=0,002)• Lack information (t=-0,431 p=0,032)

Family/Non-Family background: Economic motives• Avoid labor costs (t=-1,740 p=0,007)• Income increased (t=-1,687 p=0,012) • Regulations and licensing requirements (t=-

1,201 p=0,031) Integrating New Migrants in New Europe

Results: normalization and attribution

Local/Migrants• Financial aids (t=-1,245 p=0,002)• Social support (t=-0,711 p=0,011)• Publics aids (t=-0,339 p=0,018)

• Family allowances (t=0,255 p=0,009)


Migration, Shadow Economy And Normalization

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