Extent and distribution of unregistered employment in the service industries in Europe

Although a voluminous literature exists on the prevalence of the informal economy, few studies evaluate unregistered employment and none its prevalence and distribution across the service industries. This paper fills that gap. Reporting a 2015 European Working Conditions Survey based on 43,850 face-to-face interviews, the finding is that 7% (1 in 14) of service industry employees have no written contract of employment across the 35 European countries surveyed, although this varies from 34% in Cyprus to 1% in Sweden. A logistic regression analysis at the European level reveals significant associations between the propensity to work with no contract and various individual-, household- and firm-related characteristics, with unregistered employment more prevalent among women, younger people, those with fewer years in education, migrants, those living in households unable to make ends meet, those working in smaller businesses, and the hospitality and household service sectors. The theoretical and policy implications are then discussed

COVID-19 and undeclared work: impacts and policy responses in Europe

The Coronavirus pandemic has led to restrictions on movement and workplace closures, resulting in governments offering temporary financial support to enterprises and workers. This paper evaluates a group unable to access this financial support, namely those in the undeclared economy, and possible policy responses. To identify the service industries and workers involved, a late 2019 Eurobarometer survey of undeclared work in Europe is reported. This reveals that undeclared work is particularly prevalent in the hospitality, retail and personal services sectors and identifies the population groups over-represented. Given that this undeclared workforce is now largely unable to work, it will be argued that providing access to temporary financial support, through a voluntary disclosure initiative, would be a useful initiative not only to provide the income support these enterprises and workers need but also to bring them out of the shadows and put them on the radar of the state authorities

Evaluating the participation of marginalized populations in undeclared work in the Baltic Sea countries

To evaluate the ‘marginalization thesis’ which asserts that marginalized populations are more likely to participate in undeclared work, we analyse a 2013 Eurobarometer survey of eight Baltic Sea countries, namely four Western countries (Denmark, Finland, Germany and Sweden) and four post-Soviet countries (Estonia, Latvia, Lithuania and Poland). Finding that across both the western and post-Soviet Baltic Sea countries, some marginalized populations (e.g., those having difficulties paying household bills, younger people) are significantly more likely to participate in undeclared work, and others are not (e.g., women, those with a high level of tax morality), a more nuanced and variegated understanding of the marginalization thesis is developed that is valid across both western and post-Soviet Baltic Sea countries. The paper concludes by discussing the theoretical and policy implications

Are marginalised populations more likely to engage in undeclared work in the Nordic countries?

The aim of this paper is to evaluate the validity of the ‘marginalisation thesis’, which holds that marginalised populations are more likely to participate in the undeclared economy, in relation to Nordic societies. To do this, a 2013 special Eurobarometer survey is reported on who engages in undeclared work conducted in three Nordic nations, namely Denmark, Finland and Sweden involving 3,013 face-to-face interviews. Using logistic regression analysis, the finding is that the marginalisation thesis is valid in relation to some marginalised populations, namely those having difficulties paying their household bills, younger age groups, those defining themselves as working class and those who hold non-conformist norms, values and beliefs on tax compliance. Other marginalised populations however, including the unemployed, those living in rural areas and with less formal education, are revealed to be no more likely to engage in undeclared work than the employed, those in urban areas and with more years in education. Yet others marginalised populations, including women and people living in less affluent Nordic nations, are significantly less likely to participate in the undeclared economy than men and those living in more affluent Nordic countries, thus supporting the reinforcement thesis that undeclared work reinforces, rather than reduces, the disparities produced by the declared economy. The outcome is a call for a more nuanced understanding of the marginalisation thesis as valid for some marginalised populations but not others. The paper concludes by discussing the implications for theory and policy of this more variegated assessment of the marginalisation thesis