Estimates Of The Hidden Economy In Austria On The Basis Of Official Statistics

By definition, the hidden economy eludes straight observation by means of official statistics. Nevertheless, attempts to quantify these phenomena usually make reference to official materials in various respects, e.g. as regards definition, or when evaluating the relative importance or some indirect reflections of such activities. In this context, official statistics may serve as a particularly useful reference when those sections of the economy are concerned which are hardly or not at all susceptible to hidden activities. Such sections can be identified in terms of industry and in terms of occupation. In the present investigation such techniques have been used to a large extent and only official statistics have been drawn upon as a data source. Accordingly, the outcome matches closely with national accounts concepts and existing national classifications of various socio‐economic statistics. The estimates refer to the hidden (“off the records”) activities of the self‐employed as well as to similar activities of employees, the unemployed etc. (“moonlighting”). Per se criminal activities have not been included, however. As regards the self‐employed the estimates basically rely on income differentials observed between small scale entrepreneurs and their employees. As regards employees numbers employed of various preselected occupational categories and of some additional groups of non‐employed have been processed successively, matching them e.g. with comparable data on time budgets and regional frequency. The outcome largely confirms common experience or expectations as regards the fields where hidden activities assume significant relative importance whereas the overall size of the hidden economy turned out fairly small as compared with official GDP.