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Illegitimate wage practices in Eastern Europe: - The case of 'envelope wages'

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Author Info
Colin. C. Williams
Abstract

To evaluate the prevalence in Eastern Europe of a little discussed illegitimate wage practice in which employers pay their formal employees both a declared wage and an undeclared ‘envelope wage’, an extensive survey involving 10,671 face-to-face interviews in eleven post-socialist societies is here reported. The finding is that 10 per cent of all employees received envelope wages during the last 12 months amounting on average to two-fifths of their gross annual wage. Revealing how although unevenly distributed, this wage practice is nonetheless ubiquitous throughout Eastern Europe, the paper concludes by briefly reviewing policy options for tackling this labour arrangement.

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File URL: http://www.hampp-verlag.de/hampp_e-journals_JEMS.htm#308
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Publisher Info
Article provided by Rainer Hampp Verlag in its journal Journal for East European Management Studies.

Volume (Year): 13 (2008)
Issue (Month): 3 ()
Pages: 253 - 270
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2008_03_williams

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Web page: http://www.hampp-verlag.de/

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Related research
Keywords: Envelope wages; informal economy; shadow sector; tax compliance; undeclared work; Eastern Europe;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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This page was last updated on 2009-11-21.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.