Does higher cash-in-hand income motivate young people to engage in under-declared employment?

Ioana Alexandra Horodnic (), Colin Williams and Rodica Ianole-Cä‚lin ()
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Ioana Alexandra Horodnic: Alexandru Ioan Cuza University of Iasi
Rodica Ianole-Cä‚lin: University of Bucharest

Eastern Journal of European Studies, 2020, vol. 11(2), 48-69

Abstract: The aim of this paper is to analyse financial gains as a motive for engaging in under-declared employment (choosing envelope wages) amongst youth population. A youth profile of those more likely to choose envelope wages for financial gains is proposed, based on socio-demographic characteristics. Reporting on a survey amongst 1,059 students and employing logistic regression analysis, the finding is that unmarried undergraduate students with a difficult financial situation are more likely to choose envelope wages for a higher cash-in-hand income. Various theoretical explanations and motivations for engaging in such noncompliant behaviour are then explored to test their validity for the youth population.

Keywords: under-declared employment; under-declared wages; envelope wages; undeclared work; financial motivation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:jes:journl:y:2020:v:11:p:48-69

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