The Shadow Economy and Shadow Economy Labor Force in OECD Countries: What do we (not) know?

Schneider, Friedrich; Feld, Lars P.; Schomaker, Rahel; Müller, Christian; Knorr, Andreas

doi:10.1515/9783110508222-011

Cited by 47 publications

(49 citation statements)

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“…Although it is difficult to measure something that practically is unknown, many authors have strived to address such attempts. In various studies, Schneider and his colleagues set out to periodically measure the shadow economy in different states of the world and their initiatives are outstanding Schneider, Klingmair 2004;Schneider et al 2010Schneider et al , 2015Schneider 2005Schneider , 2011Schneider , 2013.…”

Section: Measuring the Dependent Variable: Shadow Economymentioning

confidence: 99%

Rethinking the shadow economy in terms of happiness. Evidence for the European Union Member States

Achim

Borlea

Găban

et al. 2015

Technological and Economic Development of Economy

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Abstract. This paper's goal is to highlight how happiness affects the level of shadow economy, by using many control variables within different types of potentially determining factors of shadow economy. Another main contribution consists in the systematic comparison between old and new European Union member states in terms of determinants of shadow economy, including happiness. Our findings consist in the fact that happier people are more likely to act honestly, thus causing a decrease in the size of shadow economy and this result is valid both for old and new European Union countries. In addition, we found that the quality of public governance and the richness of a country are associated with a lower propensity towards shadow economy for all the member states. However, the relationship between public governance and shadow economy are never significant when the happiness and richness variables vary simultaneously. Our research reveals that the shadow economy in European Union countries is explained in percent of about 62% by richness and happiness of the people. Contrary to our expectations, the fiscal pressure seems not to be a determinant for shadow economy in the European Union space.

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Section: Measuring the Dependent Variable: Shadow Economymentioning

confidence: 99%

Rethinking the shadow economy in terms of happiness. Evidence for the European Union Member States

Achim

Borlea

Găban

et al. 2015

Technological and Economic Development of Economy

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“…However, as indicated by OECD (2002), temporary work is an important feature of the employment legislation in most OECD European countries and, hence, there is no sufficient variation across countries' labor regulation on this matter for further investigation of this issue. 14 In case of Germany, smaller shadow economy was, perhaps surprisingly, documented in the eastern part (Schneider, 2003). 15 This situation is confirmed by the European Commission report (EC, 2007), according to which the share of informal economy on the GDP in Bulgaria and Romania was the highest in the group of countries acceding to the EU between 2004 and 2007. large degree of informality.…”

mentioning

confidence: 91%

“…We analyze changes in labor market institutions and their impact on the share of the labor force in shadow employment and on the shadow economy production. Furthermore, we address the 5 In contrast, Schneider (2003) argues that informal sector exhibits higher level of productivity compared to the official economy. One of the reasons he mentions is stronger work effort of informal workers, whose pay is not burdened by huge taxes, social contributions and other regulations.…”

Section: Introductionmentioning

confidence: 99%

Labor Institutions and Their Impact on Shadow Economies in Europe

Fialová¹,

Schneider²

2011

Policy Research Working Papers

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper analyzes the role of labor market institutions in explaining developments of shadow economies in European countries. We use several alternative measures of the shadow sector, and we examine effects of labor institutions on shadow sector in two specific regions: new and old European Union member countries, as their respective shadow sectors exhibited a different development in the last decade. While the share of shadow economy in GDP averaged 27.7% in the new member countries in 1999-2007, the respective share in the old member states stood at 18.0% only. In our paper, we estimate effects of labor market institutions on two sets of shadow economy indicators-shadow production and shadow employment. Comparing alternative measures of the shadow sector allows more granulated analysis of the labor market institutions effects. Our results indicate that the one institution that unambiguously increases shadow economy production and employment is the strictness of employment protection legislation. Other labor market institutions-active and passive labor market policies, labor taxation, trade union density and the minimum wage setting-have less straightforward and statistically robust effects and their impact often diverge in new and old EU member countries. The differences are not robust enough, however, to allow us to reject the hypothesis of similar effect of labor market institutions in new and old EU member states. Terms of use: Documents in

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“…hidden economy, grey economy, black economy, unreported economy, shadow economy, etc. (Gërxhani and Feige, 1999;Henry and Sills, 2006;Schneider, 2011) [1]. This in a way indicates the ambiguity of the concept.…”

Section: Defining the Conceptsmentioning

confidence: 99%

Economic crisis and “white informal economy” – a slippery slope

Dobovšek

Slak

2017

IJSSP

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The Shadow Economy and Shadow Economy Labor Force in OECD Countries: What do we (not) know?

Cited by 47 publications

References 0 publications

Rethinking the shadow economy in terms of happiness. Evidence for the European Union Member States

Rethinking the shadow economy in terms of happiness. Evidence for the European Union Member States

Labor Institutions and Their Impact on Shadow Economies in Europe

Economic crisis and “white informal economy” – a slippery slope

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