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

Evaluating the prevalence of the undeclared economy in Central and Eastern Europe: An institutional asymmetry perspective

This article examines the undeclared economy in general, and envelope wages more particularly, in 10 Central and East European countries, drawing on a 2013 Eurobarometer survey. The explanatory approach focuses on the asymmetry between the codified laws and regulations of the formal institutions and the unwritten socially shared rules of informal institutions. A strong association is revealed between the prevalence of envelope wage payments and the degree of asymmetry between formal and informal institutions at both the individual and country levels. We explore the implications for theorising and for tackling undeclared work practices

Tackling the informal economy in Southeast Europe: an institutional approach

Analysing a 2013 survey of the informal economy in six Southeast European nations, this paper reveals how such tax non-compliance arises when the codified laws and regulations of a society’s formal institutions are not aligned with the norms, values and beliefs of citizens (its informal institutions). Tackling the informal economy is therefore shown to require a re-aligning of a society’s formal and informal institutions. This necessitates not only changing citizens’ norms, values and beliefs using, for example, tax education campaigns, but also changing the formal institutions to improve trust in government. The wider theoretical and policy implications are then discussed

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