Size and Development of the Shadow Economy in Germany, Austria and Other oecd-Countries. Some Preliminary Findings

Friedrich Schneider ()

Revue économique, 2009, vol. 60, issue 5, 1079-1116

Abstract: The size and development of the shadow economy of Germany, Austria and other oecd-countries is estimated, using various estimation procedures. An increased burden of taxation and social security payments, combined with intensive labor market regulation, quality of state institutions and the tax morale are the driving forces for the shadow economy. Moreover, the results of recent surveys for Germany and Austria demonstrate, that the readiness to undertake illicit employment as well as its acceptance are high in both countries. Finally, conclusions are made about the effect of the shadow economy on the official one and incentive oriented policy means are presented, so that the ?black? value added can be transformed into official value added.

Date: 2009
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