The Implementation of Vouchers in Formalising Undeclared Work in the Republic of North Macedonia

Predrag Bejakovic

Published: September 2022

This article reviews the main challenges of the labour market in the Republic of North Macedonia and explains the various definitions of undeclared work (UW). North Macedonia (earlier former Yugoslav Republic of Macedonia or FYRM) has achieved very respectable success in its economic development and preparation of needed preconditions for economic growth. However, additional improvements and measures are needed. This article overviews the various definitions and methods for estimating UW. In the further formalisation of UW, the use of a voucher-based system can be more than useful. A service voucher is a means of payment, often co-financed by government, which allows a private user to pay an employee for conducting tasks. By providing service vouchers to those employing labour, the intention is to encourage them to purchase services on a formal rather than informal basis. The introduction of voucher schemes is not the goal per se, but it can be an important precondition for establishing the rule of law and to enable more generous public revenues.

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