EconPapers    
Economics at your fingertips  
 

Tackling the illegitimate under-reporting of salaries in Southeast Europe: some lessons from a 2015 survey in Bulgaria, Croatia and FYR Macedonia

Colin Williams () and Josip Franic ()
Additional contact information
Josip Franic: Institute of Public Finance, Zagreb, Croatia

Eastern Journal of European Studies, 2017, vol. 8(1), 5-28

Abstract: To tackle the illegitimate employer practice of under-reporting salaries, the conventional deterrence policy approach seeks to increase the penalties and risk of detection. Recently, however, calls have been made for a new more indirect approach that enhances tax morale so as to nurture a culture of self-regulation. The aim of this paper is to evaluate these two policy approaches. Reporting evidence from 6,019 face-to-face interviews conducted in Bulgaria, Croatia and FYR Macedonia in 2015, logit regression analysis reveals no association between salary under-reporting and the perceived level of penalties and risk of detection, but a strong association between salary under-reporting and the level of tax morale. The paper concludes by discussing the implications of the findings for theory and policy.

Keywords: envelope wages; tax morale; informal economy; Southeast Europe (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://ejes.uaic.ro/articles/EJES2017_0801_WIL.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jes:journl:y:2017:v:8:p:5-28

Access Statistics for this article

More articles in Eastern Journal of European Studies from Centre for European Studies, Alexandru Ioan Cuza University Contact information at EDIRC.
Series data maintained by Alupului Ciprian ().

 
Page updated 2017-11-07
Handle: RePEc:jes:journl:y:2017:v:8:p:5-28