Outside the State - The Shadow Economy and Shadow Economy Labor Force

29 Pages Posted: 3 Jul 2014

See all articles by Friedrich Schneider

Friedrich Schneider

Johannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Date Written: June 11, 2014

Abstract

In this paper the main focus lies on the shadow economy and on work in the shadow. The most influential factors on the shadow economy are tax policies and state regulation. The size of the shadow economy was decreasing over 1999 to 2007 from 34.0% to 31.2% for 161 countries (unweighted average). Furthermore, economic opportunities, taxes and regulations, the general situation on the labor market, and unemployment are crucial for an under-standing of the dynamics of the shadow labor force. Opposite to the decrease of the shadow economy (value added figures), the shadow economy labor force increased for most countries over the period 1999 to 2007.

Keywords: shadow economy, undeclared work, shadow labor force, tax morale, tax pressure, state regulation, labor market

JEL Classification: K420, H260, D780

Suggested Citation

Schneider, Friedrich G., Outside the State - The Shadow Economy and Shadow Economy Labor Force (June 11, 2014). CESifo Working Paper Series No. 4829, Available at SSRN: https://ssrn.com/abstract=2461652

Friedrich G. Schneider (Contact Author)

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
+43 732 2468 8210 (Phone)
+43 732 2468 8208 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
98
Abstract Views
516
rank
292,343
PlumX Metrics