Tackling Undeclared Work in the FYR of Macedonia: Knowledge-Informed Policy Responses

10 Pages Posted: 29 Aug 2017

See all articles by Ruslan Stefanov

Ruslan Stefanov

University of Sheffield - School of Management

Colin Williams

University of Sheffield - School of Management

Peter Rodgers

University of Sheffield

Date Written: August 25, 2017

Abstract

Undeclared work has deep roots in FYR of Macedonia. 1 in 16 adults and 1 in 8 of the employed engage in undeclared work. The use of informal connections to circumvent formal institutions is practiced by 35% of Macedonians. Formal institutions in the country are underdeveloped. Unemployment also remains unusually high compared with the EU average. The traditional repression approach to tackling undeclared work, which has been prioritised so far by the authorities, is ineffective. Increasing penalties and surveillance/control should at the very least be supplemented by public awareness raising campaigns, educating citizens, and the further modernisation of the state institutions. The government should increase spending on the socially excluded, including among the ethnic Albanians.

Keywords: informal economy, shadow economy, tax evasion, labor economics, informal sector

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

Suggested Citation

Stefanov, Ruslan and Williams, Colin and Rodgers, Peter, Tackling Undeclared Work in the FYR of Macedonia: Knowledge-Informed Policy Responses (August 25, 2017). Available at SSRN: https://ssrn.com/abstract=3026358 or http://dx.doi.org/10.2139/ssrn.3026358

Ruslan Stefanov

University of Sheffield - School of Management ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

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

Peter Rodgers

University of Sheffield ( email )

17 Mappin Street
Sheffield, Sheffield S1 4DT
United Kingdom

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