DELETERIOUS EFFECTS OF THE INFORMAL ECONOMY

The article discusses the negative effects of informal sector in economic activity on the socio-economic development of the country. It is proven that despite the temporary effects of part-time employment of unskilled labor and a price advantage, enterprises of the informal sector cause much more devastating effects that are revealed in violation of the laws of competition, increasing the tax burden on formally employed individuals, and the unstimulating factors on economic growth. An integrated program, which might contribute to transfer the companies of the informal sector in the formal economy contribute is developed.