Assessing the Cross-National Transferability of Policy Measures for Tackling Undeclared Work

This working paper is part of a series of deliverables within the project entitled GREY – Out of the shadows: developing capacities and capabilities for tackling undeclared work in Bulgaria, Croatia and FYR Macedonia’ (‘GREY’), funded by the European Commission’s Framework 7 Industry-Academia Partnerships Programme (IAPP). The objective of this project is to provide concrete policy recommendations about what policies may work better in tackling the undeclared economy in two new EU Member States (Bulgaria and Croatia) and a candidate country (FYR Macedonia). In particular, the objectives of our project are to: Conduct a comprehensive review of the policy approaches and measures being used to tackle undeclared work. Empirically evaluate the measures for facilitating the shift of undeclared work into the declared economy in the selected target region. Based on the results of the first two objectives, to recommend possible new policy approaches and measures (or endorse old ones) that will facilitate the shift of undeclared work into the declared economy. The aim of this Working Paper No. 5 is to provide a preliminary assessment of the appropriateness of possible policy approaches for tackling undeclared work as well as their transferability to three target countries: Bulgaria (BG), Croatia (HR) and FYR Macedonia (FYROM). This assessment results in the provision of a set of promising policy practices for tackling undeclared work in these three countries. Grounded in an institutional theory perspective, these seek to create symmetry between the codified laws and regulations of formal institutions in these countries and the codes, norms and values of the informal institutions, in order to reduce participation in undeclared work. This is argued to require changes in not only the informal but also formal institutions in each of these countries. How this can be achieved is then considered for each country