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Intrinsic versus Extrinsic Drivers: An Investigation into Young People’s Motives to Engage in Under-Declared Employment and Undeclared Work

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  • Rodica Ianole-Călin
  • Ioana Alexandra Horodnic
  • Aurelian-Petruș Plopeanu

Abstract

The paper aims to deepen understanding of the reasons for participation in undeclared work and under-declared employment. Alongside the main theories used so far in the field, self-determination theory is introduced by investigating the role of internalized and extrinsic motivation. Logistic regression analysis and classification and regression trees are used on a sample of 1,059 Romanian youths. The results emphasize the central role of tax morale, in generating intolerance toward informal practices and internalized motivations for compliance. In addition, peer influence shapes the decision to adopt informal practices whereas deterrent measures have no significant impact.

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  • Rodica Ianole-Călin & Ioana Alexandra Horodnic & Aurelian-Petruș Plopeanu, 2022. "Intrinsic versus Extrinsic Drivers: An Investigation into Young People’s Motives to Engage in Under-Declared Employment and Undeclared Work," Eastern European Economics, Taylor & Francis Journals, vol. 60(6), pages 559-577, November.
    • Handle: RePEc:mes:eaeuec:v:60:y:2022:i:6:p:559-577
    DOI: 10.1080/00128775.2022.2075393
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