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. S eville (Spain). September 19th to 21st, 2007 Integrating New Migrants in New Europe

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
Integrating New Migrants in New Europe

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 Integrating New Migrants in New Europe

Ethnic business Integrating New Migrants in New Europe

Activity Integrating New Migrants in New Europe

Family background Integrating New Migrants in New Europe

Results: activity and social networks
Work experience/Business activity (r s =0.189 p=0.078).
Family activity/Business activity (r s =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)

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

by Francisco Diaz Bretones on Apr 18, 2009

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