Who Participates in the Undeclared Economy in South-Eastern Europe? An Evaluation of the Marginalization Thesis

South-Eastern Europe Journal of Economics, Vol. 13, No.2, pp. 157-175, 2015

23 Pages Posted: 13 Dec 2016 Last revised: 11 Jan 2017

See all articles by Colin Williams

Colin Williams

University of Sheffield - School of Management

Ioana Alexandra Horodnic

University of Sheffield - School of Management

Date Written: 2015

Abstract

To evaluate the “marginalization thesis” which posits that marginalized populations are more likely to engage in the undeclared economy, a 2013 Eurobarometer survey of six South-East European countries is analysed. Finding that some marginalized populations (e.g., those having difficulties paying household bills, the unemployed, younger people) are significantly more likely to participate in undeclared work, but others are not (e.g., poorer nations, women, those with fewer years in formal education, those living in rural areas), the outcome is a call for a more variegated and nuanced understanding of the marginalization thesis. The paper then discusses the theoretical and policy implications.

Keywords: Informal Economy, Underground Sector, Shadow Economy, Marginalized, Baltic Region

JEL Classification: H26, J46, J48, K34, K42, O17, P37

Suggested Citation

Williams, Colin and Horodnic, Ioana Alexandra, Who Participates in the Undeclared Economy in South-Eastern Europe? An Evaluation of the Marginalization Thesis (2015). South-Eastern Europe Journal of Economics, Vol. 13, No.2, pp. 157-175, 2015, Available at SSRN: https://ssrn.com/abstract=2883490

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

Ioana Alexandra Horodnic

University of Sheffield - School of Management ( email )

Conduit Rd
Sheffield, S10 1FL
United Kingdom

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