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The Size and Growth of the Hidden Economy in Norway

Arne Jon Isachsen and Steinar Strøm

MPRA Paper from University Library of Munich, Germany

Abstract: The present size of the hidden economy in Norway is between 4 and 6 percent of GDP, of which hidden labor income constitutes about half. A survey approach reveals that 415 of the population is of the opinion that people in general accept income from moonlighting that is not reported, and 213 believes that this share of acceptance is on the increase. Furthermore, surveys clearly show that hidden labor services are of satisfactory quality, that they mainly are paid for in cash, but with checks being increasingly used, and that buyers find it easier to obtain services from the hidden labor market than from the regular one. A shortening of the work week in order to alleviate unemployment may result in an increased supply of hidden labor.

Keywords: Tax Evasion; Labor Market; Econometrics (search for similar items in EconPapers)
JEL-codes: H2 H26 J4 J46 (search for similar items in EconPapers)
Date: 1985, Revised 1985
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Published in The Review of Income and Wealth no1.vol 31(1985): pp. 21-38

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Related works:
Journal Article: THE SIZE AND GROWTH OF THE HIDDEN ECONOMY IN NORWAY (1985) Downloads
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