Raising the minimum wage is a complex decision that must consider the balance between workers' welfare and businesses' capacity to bear it. If the minimum wage increases without being based on productivity or economic growth, it may cause issues such...
Wage growth is a complex issue tied to multiple economic, political, and labor market factors. It has both immediate and long-term impacts on employees and employers—but who is the primary beneficiary of this process? The answer depends on the perspective...
According to official data on the labor market for the fourth quarter of 2024, several important signals emerge regarding the economy and employment policies in Albania. Below, after a careful review and a comparative look at some statistics from neighboring...
The obstacles to wage formalization stem from multiple causes and involve various actors who influence Albania's economy and labor system. There is no single party solely responsible; instead, a combination of factors and actors contribute to the persistence of informality. 1....
Public debt is one of the main indicators of a country’s fiscal sustainability. In this analysis, we will examine the trends of Albania’s public debt in relation to GDP during the period 2014–2024, assessing the impact of budget deficit, revenue...
This analysis addresses the expected developments and trends of the Albanian economy during the 2026–2028 period, comparing them with the 2022–2024 period and offering a deep perspective on the successes and weaknesses of economic and fiscal policies. The analysis covers various...
Minimum wages have a positive and significant effect mainly on formal sector wages. However, this does not appear to have any significant effect on informal sector wages. By studying the effect on workers working in the informal sector, it is...
The informal economy is important to the formal economy because if its size is formalized year after year, this would potentially affect economic growth, but it would also increase government budget revenues and as a result improve social welfare. In an...
Tax reforms can effectively strengthen the incentives for some groups of the population and the economy that can affect a long-term perspective in the Balkan economies, which are under an increased pressure for market expansion and the right incentives to...
The treatment of employment tax between equity and efficiency is at the core of modern ways of taxing employment income. On the one hand, the government wants to improve social welfare through a fairer distribution of disposable income (tax equity). On...
