Unregistered Employment

Unregistered Emloyment

Unregistered Employment
Editions:PDF - First Edition
ISBN: 978-1-9997035-4-7
Size: 40.00 x 70.00 cm
Pages: 205

IJOPEC Publication

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Preface

Underdeveloped economies and emerging markets are suffering from various economic problems on the path of development and welfare. Unregistered employment, among these problems, are one of the most critical one to reach the welfare and development targets of countries since negative effects of this problem considered to other problems are not only heading the economic growth off but also income distribution. Turkey, as an emerging market, is also one of the countries struggling with severe informal employment issue. A yearlong European Union Project conducted by Kocaeli University from Turkey aims to tackle with this issue in regional aspect. Within the scope of this project called “Do not Remain Indifferent to Unregistered Youth Employment” (Genç İstihdama Kayıt(dışı)sız Kalma), many activities have been carried out to raise the awereness of the people about negative results of unregistered employment.

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The project has also been serving as a forum for researchers, specialists and scientists from academia, public sector and industry to discuss progress and developments achieved in the area of unregistered employment and related topics. One of the main goals of this project was to emphasize unregistered employment’s impacts, to discuss possible policies to overcome this problem, to offer remedies, and to talk about successful local practices. Invited speakers presented 3 plenary lectures tackling broad subjects in unregistered employment. Since our notable keynote speakers are from academia and International Labor Organization (ILO) participants could take the benefit of wide range of experience and knowledge from the invited speakers.

This book contains selected papers presented by speacialists and academician studying in this area at this project implemented in Kocaeli, Turkey. European Congress on Economic Issues (ECOEI), which is one of the activities in the project, also welcomed contributions on other topics in economics such as unemployment, labour market, taxation, shadow economy and welfare economics and in econometrics such as panel data and time series. During the project, more than 300 authors from 18 different countries have been contributing to the project through a total of 139 presentations and papers. After reviewing the submitted full papers with the help of international scientific committee, Papers were accepted to be published in this book. International reviewers evaluated each abstract and full papers. Recommended papers are printed in this book. The organizers are grateful to the members of the International Scientific Committee and to Special Reviewers for their effort.

Before closing, we would like to thank all the invited speakers, reviewers, authors and organizers in this project. This book is the result of not only their contributions, time, and efforts but also their dedication to science. Satellite events added a plus to the scientific dimension to this project. The high-quality scientific contributions included in this volume serve as extensive documentation basis for those interested. We hope that this book can serve a very important purpose and it brings a real added value to the related literature.

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The European Union Project

The “European Congress on Economic Issues: Unregistered “Youth” Employment: Impacts, Policies, Remedies, and Local Practices”, is scheduled to be held from 30 March to 1 April 2017 in İzmit/Kocaeli which is closely located to Istanbul in Turkey.

The ECOEI 2017 is organized as part of the European Union Project- “Do not Remain Indifferent to Unregistered Youth Employment” (Genç İstihdama Kayıt(dışı)sız Kalma), carried out under the Grant Scheme for Promoting Registered Employment Program. “Promoting Registered Employment II” operation funded under Instrument for Pre-Accession Assistance (IPA), will contribute to the achievement of the overall objective of ‘employment’ priority axes 1, which is to attract and retain more people in employment, particularly by increasing labour force participation of women, and decrease unemployment rates, especially for young people.  More specifically, the Operation will contribute to the implementation of Measure 1.3 in The Human Resources Development Operational Programme (HRD OP) which aims to “combat unregistered employment” and “promote registered employment”.

“Promoting Registered Employment II” operation funded under IPA, will contribute to the achievement of the overall objective of ‘employment’ priority axes 1, which is to attract and retain more people in employment, particularly by increasing labour force participation of women, and decrease unemployment rates, especially for young people.  More specifically, the Operation will contribute to the implementation of Measure 1.3 in HRD OP which aims to “combat unregistered employment” and “promote registered employment”.

Unregistered employment means unrecorded or under recorded labour force in any official records or statistics. This type of employment is not reflected in the official figures of the labour force. The main factor/motive behind the unregistered employment is the employer's attempt to reduce production costs by avoiding the labour cost components such as social security contributions and taxes.  Another factor/motive of unregistered employment is insufficient knowledge of the public about social security.

Informal employment leads to various problems. The main ones are increase in the social security deficits; inequality in distribution of income; unfair competition; bad working conditions; difficulties in realization of the foreseen targets in various documents published in the field of social protection; difficulties in management of social protection system; low production quality; higher rate of work accidents and occupational diseases risk for unregistered workers; impossibilities to reach trade union and collective bargaining rights for unregistered workers; increase in unskilled labour.

Although the above mentioned problems’ have heavy impacts on Turkey over the last ten years, as a result of various efforts in this field, unregistered employment rate declined to 38.5 % as of November 2012 (TURKSTAT statistics).

This grant scheme is launched in order to contribute to the solution of unregistered employment in Turkey. The previous Promoting Registered Employment-I (PRE-I) operation not only contributed much to the cooperation within local social partners via grant scheme, but also increased awareness and knowledge level of Social Security Institutions (SSI) personnel and other related people via its technical assistance scheme. Under the grant scheme of PRE I Operation, 41 grant projects with a total amount of € 9.317.650 were implemented by local authorities, NGOs, and social partners collaboratively with the SSI local offices.

In this respect, the PRE-II operation will seek to undertake complementary and follow-up activities. Through such activities, this Operation will further strengthen the institutional capacity of SSI central and local staff, local organizations and social partners. Besides, the Operation will institutionalize the bonds established during PRE-I operation between local branches of SSI and social partners.

The Project is being implemented jointly by the European Union, the Ministry of Labour and Social Security of Turkey and University of Kocaeli. This project includes a set of activities such as analysis of current situation, public spotlight, workshops, training courses and seminars; which will be completed with the international congress- the ECOEI. It is planned to be organized annually on a selected topic, having utmost importance for developing and underdeveloped economies.