The Size and structure of uninsured employment

Abstract

The paper challenges the accuracy of the high rates of uninsured employment i.e., one in three, that emerge from the investigations of the Inspectorate of Labour, because they are based on biased samples. Comparing those insured with the Social Security Foundation (IKA) with those estimated from the Labour Force Survey, generates a rate of uninsured employment of 11.7%. When employment of illegal immigrants is added, the uninsured employment rate is estimated at around 17% of those employed and insured with IKA or 9% of total employment. While uninsured employment initially increased with the economic crisis, subsequently, like insured employment, it declined remarkably. The usual categories of uninsured employment are those insured for the minimum work days necessary to claim various benefits, those with a second job, working pensioners, as well as those declaring the minimum insurable pay.