Training Program Course

Informality: Policy Objectives, Options, and Constraints (POOC)

This course focuses on how tax policy, revenue administration, labor market policies, and social insurance programs influence labor market informality - both in terms of registering labor relations and reporting tax-liable incomes. Boosting employment is a priority in many countries in Central, Eastern and Southeastern Europe, the Caucasus and Central Asia, where labor markets are often constrained by demographic trends, low labor-force participation (particularly among young people and women), and weak productivity growth. Undeclared work remains a significant challenge, leaving many individuals without social insurance and reducing revenue collection. For these reasons, many governments are considering reducing labor taxation to boost employment and curb undeclared work. This, in turn, generates financing needs for social insurance systems, particularly in contexts where such systems must be strengthened to provide adequate support at scale for workers and households. The course aims to discuss theoretical considerations, present country-specific examples of successful policy reforms, and introduce participants to analytical tools and methods useful for policy design and impact analyses.
Target Audience
Officials at ministries of finance, labor, and social affairs, social security institutions, and tax agencies involved in the analysis, design and implementation of tax and employment policies and social insurance schemes.
Qualifications
Participants are expected to have a degree in social science (e.g., economics or social policy) or a related field.



