Eliminating undeclared work: beyond a deterrence approach

Purpose – To evaluate critically the view of undeclared work as market‐like activity conducted for monetary gain, and participation as a rational economic decision, and the resultant public policy response that seeks to deter engagement in such work by ensuring that the expected cost of being caught and punished is greater than the economic benefit of participating. Design/methodology/approach – Review of empirical research on the work relations and motives of those engaged in undeclared work. Findings – This paper reveals that although some undeclared work is market‐like and conducted for unadulterated economic reasons, a large proportion is carried out under relations and for motives more akin to unpaid mutual aid, especially in deprived populations. Practical implications – Evaluating the implications of this finding for a deterrence approach, the argument is that rather than simply seek to eliminate such paid mutual aid through deterrence, a more refined approach is required that combines deterrence with initiatives to facilitate the legitimisation of such work. How this might be achieved is then outlined. Originality/value – This paper provides the rationale for moving towards a more “joined‐up” public policy approach towards tackling undeclared work and developing social capital rather than treating them as separate policy realms.