Tackling Undeclared Work in Southeast Europe: Knowledge-Informed Policy Responses

GREY Policy Brief No. 4, 2017

15 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 26, 2017

Abstract

Undeclared work is socially accepted and widely practiced in Bulgaria, Croatia, and the FYR of Macedonia. More than 1 in 5 adults in these countries acknowledge that they have bought goods and services on the undeclared economy in the prior year. More than 1 in 12 report that they have undertaken undeclared work, and more than 1 in 10 declared employees report that they receive from their employer in addition to their declared salary an additional undeclared ‘envelope’ wage. But undeclared work differs across and within the three countries. For every one working undeclared due to their exclusion from the formal economy, there are three that have chosen to exit the formal economy, and this varies across countries. Policy makers need to prioritise policy measures to improve vertical (in institutions) and horizontal (among people) trust, complementing measures to improve detection and deterrence.

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 Southeast Europe: Knowledge-Informed Policy Responses (August 26, 2017). GREY Policy Brief No. 4, 2017, Available at SSRN: https://ssrn.com/abstract=3026921 or http://dx.doi.org/10.2139/ssrn.3026921

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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