Shadow employment may follow from two main labour market failures. In the first, official market labour taxation distortions make it ineffective for some agents to engage in registered employment due to a tax wedge, which makes the revenues from unofficial employment higher than the...

Shadow employment may follow from two main labour market failures. In the first, official market labour taxation distortions make it ineffective for some agents to engage in registered employment due to a tax wedge, which makes the revenues from unofficial employment higher than the...

In recent years, it has been increasingly recognised that governments seeking to tackle undeclared work effectively should adopt a holistic approach. This seeks to coordinate strategy across the fields of labour, tax and social security law, and to use the full range of policy measures...

Recently, there has been growing recognition that some formal employees receive from their formal employers two wages, namely an official declared wage plus an additional undeclared (envelope) wage, which reduces the tax and social contributions paid to the authorities. The aim of this paper is...

To understand undeclared work and how to tackle it, this report examines the prevalence of undeclared work in the construction sector followed by how it can be tackled. This includes an outline of the policy initiatives being pursued as a result of the TUWIC (Tackling undeclared work in the...

Informal employment has been variously explained as resulting from: economic under-development and a lack of modernisation (modernisation theory); high taxes and state interference in the free market (neo-liberal theory) or inadequate levels of state intervention to protect citizens (political...

The aim of this paper is to evaluate contrasting policy approaches towards undeclared work. To do so, evidence is reported from 1,000 face-to-face interviews conducted in Croatia during 2013. Logistic regression analysis reveals no association between participation in undeclared work and the...

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...

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...