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Does higher cash-in-hand income motivate young people to engage in under-declared employment?

Author

Listed:
  • Ioana Alexandra HORODNIC

    (Alexandru Ioan Cuza University of Iasi)

  • Colin C WILLIAMS

    (University of Sheffield)

  • Rodica IANOLE-CÄ‚LIN

    (University of Bucharest)

Abstract

The aim of this paper is to analyse financial gains as a motive for engaging in under-declared employment (choosing envelope wages) amongst youth population. A youth profile of those more likely to choose envelope wages for financial gains is proposed, based on socio-demographic characteristics. Reporting on a survey amongst 1,059 students and employing logistic regression analysis, the finding is that unmarried undergraduate students with a difficult financial situation are more likely to choose envelope wages for a higher cash-in-hand income. Various theoretical explanations and motivations for engaging in such noncompliant behaviour are then explored to test their validity for the youth population.

Suggested Citation

  • Ioana Alexandra HORODNIC & Colin C WILLIAMS & Rodica IANOLE-CÄ‚LIN, 2020. "Does higher cash-in-hand income motivate young people to engage in under-declared employment?," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 48-69, December.
    • Handle: RePEc:jes:journl:y:2020:v:11:p:48-69
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    File URL: https://ejes.uaic.ro/articles/EJES2020_1102_HOR.pdf
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    Cited by:

    1. Ioana Alexandra HORODNIC & Colin C. WILLIAMS & Iuliana M. CHIÈšAC, 2022. "Evaluating the relationship between sustainable development, localisation and the informal economy: evidence from Romania," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13, pages 54-76, December.
    2. Cristian Incaltarau & Adrian V. Horodnic & Colin C. Williams & Liviu Oprea, 2021. "Institutional Determinants of Informal Payments for Health Services: An Exploratory Analysis across 117 Countries," IJERPH, MDPI, vol. 18(23), pages 1-19, November.
    3. Ioana Alexandra Horodnic & Colin C. Williams & Alexandru Maxim & Iuliana Claudia Stoian & Oana Carmen Țugulea & Adrian V. Horodnic, 2021. "Knowing and Unknowing Purchases of Undeclared Healthcare Goods and Services: The Role of Vertical and Horizontal Trust," IJERPH, MDPI, vol. 18(21), pages 1-14, November.
    4. Daniel Homocianu & Aurelian-Petruș Plopeanu & Rodica Ianole-Calin, 2021. "A Robust Approach for Identifying the Major Components of the Bribery Tolerance Index," Mathematics, MDPI, vol. 9(13), pages 1-20, July.

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