The Shadow Economy and Work in the Shadow: What Do We (Not) Know?

Friedrich Schneider ()

No 6423, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper the main focus lies on the shadow economy and on work in the shadow in OECD, developing and transition countries. Besides informal employment in the rural and non-rural sector also other measures of informal employment like the share of employees not covered by social security, own account workers or unpaid family workers are shown. The most influential factors on the shadow economy and/or shadow labor force are tax policies and state regulation, which, if they rise, increase both. Furthermore the discussion of the recent micro studies underline that economic opportunities, the overall burden of the state (taxes and regulations), the general situation on the labor market, and unemployment are crucial for an understanding of the dynamics of the shadow economy and especially the shadow labor force.

Keywords: shadow economy; undeclared work; shadow labor force; tax morale; tax pressure; state regulation; labor market (search for similar items in EconPapers)
JEL-codes: D78 H26 K42 (search for similar items in EconPapers)
Pages: 73 pages
Date: 2012-03
New Economics Papers: this item is included in nep-iue, nep-lab, nep-law, nep-lma and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (119)

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