Ioana Alexandra Horodnic

  • Current position:
    Assistant Professor, Alexandru Ioan Cuza University of Iași, Romania
  • Research interest:
    Personnel economics, labor economics, business economics, informal economy
  • Website:
  • Affiliations:
    Alexandru Ioan Cuza University of Iași, Romania
  • Past positions:
    Post-doctoral Fellow, “Gh. Zane” Institute for Economic and Social Research, Romanian Academy Iași Branch, Iași, Romania (2014–2015); Associate Teaching Assistant, Alexandru Ioan Cuza Univeristy of Iași, Faculty of Economics and Business Administration, Iași, Romania (2009–2015)
  • Qualifications:
    PhD Marketing, Alexandru Ioan Cuza University of Iași, 2012
  • Personal statement about IZA World of Labor:
    This project provides an excellent bridge between academia and policymakers by offering open access to the latest state of research, presented in a short and yet a comprehensive way. I am delighted to be a part of this project
  • Selected publications:
    • “Evaluating the illegal employer practice of under-reporting employees’ salaries.” British Journal of Industrial Relations (2016) (with C. C. Williams).
    • “Evaluating the prevalence of the undeclared economy in Central and Eastern Europe: An institutional asymmetry perspective.” European Journal of Industrial Relations 21:4 (2015): 389–406 (with C. C. Williams).
    • “Motivation and research productivity in a university system undergoing transition.” Research Evaluation 24:3 (2015): 282–292 (with A. Zaiț).
    • “Explaining participation in the informal economy: An institutional incongruence perspective.” International Sociology 30:3 (2015): 294–313 (with C. C. Williams and J. Windebank).
    • “Evaluating competing public policy approaches towards the informal economy: Some lessons from the United Kingdom.” International Journal of Public Sector Management 29:4 (2016): 365–380 (with C. C. Williams and L. Burkinshaw).
  • Articles

Cash wage payments in transition economies: Consequences of envelope wages

Reducing under-reporting of salaries requires institutional changes

July 2016

10.15185/izawol.280 280

by Ioana Alexandra Horodnic Horodnic, I

In transition economies, a significant number of companies reduce their tax and social contributions by paying their staff an official salary, described in a registered formal employment agreement, and an extra, undeclared “envelope wage,” via a verbal unwritten agreement. The consequences include a loss of government income and a lack of fair play for lawful companies. For employees, accepting under-reported wages reduces their access to credit and their social protections. Addressing this issue will help increase the quality of working conditions, strengthen trade unions, and reduce unfair competition.