The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries

Friedrich Schneider ()

No 514, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using the currency demand and DYMIMIC approaches estimates are presented about the size of the shadow economy in 22 Transition and 21 OECD countries. Over 2001/2002 in 21 OECD countries is the average size of the shadow economy (in percent of official GDP) 16.7% of “official” GDP and of 22 Transition countries 38.0%. The average size of the shadow economy labor force (in percent of the population of working age) of the year 1998/99 in 7 OECD-countries is 15.3% and in 22 Transition countries is 30.2%. An increasing burden of taxation and social security contributions combined with rising state regulatory activities are the driving forces for the growth and size of the shadow economy (labor force).

Keywords: shadow economy; transition economies; tax and social security burden; government regulation (search for similar items in EconPapers)
JEL-codes: D78 H2 H26 O17 O5 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2002-06
New Economics Papers: this item is included in nep-dev, nep-ifn and nep-pbe
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Citations: View citations in EconPapers (93)

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