Envelope Wages in the European Union

International Labour Review, Vol. 152, No. 3–4, pp. 411-430 (2013)

20 Pages Posted: 22 Dec 2015

See all articles by Colin Williams

Colin Williams

University of Sheffield - School of Management

Jo Padmore

University of Sheffield

Date Written: 2013

Abstract

This paper reveals how many formal employees in the European Union receive from their formal employer not only a declared wage but also an additional undeclared (‘envelope’) wage. Reporting a 2007 survey involving 26,659 face-to-face interviews, the finding is that 1 in 18 formal employees received envelope wages from their formal employer, which on average amounted to 25% of their gross salary, and that envelope wage payments prevail more in some countries, employee groups and businesses than others. The paper concludes by discussing the theoretical and policy implications.

Keywords: informal economy, tax evasion, shadow economy, tax, Europe

JEL Classification: H26, J46, J48, K34, K42, O17

Suggested Citation

Williams, Colin and Padmore, Jo, Envelope Wages in the European Union (2013). International Labour Review, Vol. 152, No. 3–4, pp. 411-430 (2013), Available at SSRN: https://ssrn.com/abstract=2706619

Colin Williams (Contact Author)

University of Sheffield - School of Management ( email )

15 Conduit Road
Sheffield, S10 1FL
United Kingdom

HOME PAGE: http://https://www.sheffield.ac.uk/management/staff/williams/index

Jo Padmore

University of Sheffield ( email )

17 Mappin Street
Sheffield, Sheffield S1 4DT
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
28
Abstract Views
324
PlumX Metrics