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Measuring the Informal Economy OECD Working Party on National Accounts Paris, October 2011

Measuring the Informal Economy OECD Working Party on National Accounts Paris, October 2011. Contact: nadim.ahmad@oecd.org. The Informal Economy. Frequently asked questions to OECD NA – How do countries estimate the size of the informal economy? How big is it?

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Measuring the Informal Economy OECD Working Party on National Accounts Paris, October 2011

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  1. Measuring the Informal EconomyOECD Working Party on National AccountsParis, October 2011 Contact: nadim.ahmad@oecd.org

  2. The Informal Economy • Frequently asked questions to OECD NA – How do countries estimate the size of the informal economy? How big is it? • For which we generally have little detailed information. • Increasingly the question is being posed by policy makers. Statistics Directorate

  3. The Informal Economy – WP1 • March 2011 WP1 meeting called for a study to be undertaken by STD to respond to needs in a number of policy areas: • Social protection and insurance • Growth and productivity • Tax revenues (erosion) • Trust and Integrity in public institutions • GDP comparability Statistics Directorate

  4. CSTAT 2011 • Delegates were asked to support the development of a survey of national practices based on the Eurostat Tabular approach for production. • With Sectors also broken down by size classes Statistics Directorate

  5. The Survey • Some countries have responded saying that they do not produce explicit estimates of the NOE. • The purpose of the survey is to attempt to get some measure of these implicit adjustments. • The focus for WP1 will be on Types N1 and N6 – which correspond to underground production • (typically tax-evasive but also ‘regulatory-evasive’) Statistics Directorate

  6. N1 to N7 explained All economic activities of all producers

  7. The Survey • Goes further than the conventional Tabular approach, in that it also asks for size-class breakdowns. • Understanding the nature of sectors, particularly those that have high proportions of micro-enterprises are particularly important. • Important to note that the size-class breakdown in the survey is suggestive. Countries are encouraged to provide whatever breakdowns possible. Statistics Directorate

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