ESTIMATING THE SHARE OF EMPLOYEES IN THE UNOFFICIAL ECONOMY IN CROATIA

The unofficial economy (underground economy, informal economy, moonlighting) is present in greater or lesser extent, in all countries of the world. The paper theoretically and empirically explores and analyzes the unofficial economy. Theoretical part is related to defining the unofficial economy and the reasons for participation in the unofficial economy. Empirical part analyzes the unofficial economy in Croatia for the period 2002 to 2009. The share of employees in the unofficial economy in Croatia was estimated by the labour method. The relations of the official employment and the official unemployment, then the unofficial employment and the official employment, and also the unofficial employment and the official unemployment rate were explored.