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Evaluating Policy Approaches Towards Undeclared Work: Some Lessons from FYR of Macedonia

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  • Colin C. Williams

    (University of Sheffield)

  • Slavko Bezeredi

    (Institute of Public Finance, Zagreb, Croatia)

Abstract

To tackle undeclared work, the conventional rational economic actor approach uses deterrents to ensure that the costs of engaging in undeclared work outweigh the benefits. Recent years have seen the emergence of a social actor approach which focuses upon improving tax morale. To analyse the association between participation in undeclared work and these policy approaches, 2,014 face-to-face interviews, conducted in FYROM in 2015, are reported. Logistic regression analysis reveals no association between participation in undeclared work and the perceived level of penalties and risk of detection, but there is an association with the level of tax morale. The paper concludes by discussing the implications for theory and policy.

Suggested Citation

  • Colin C. Williams & Slavko Bezeredi, 2018. "Evaluating Policy Approaches Towards Undeclared Work: Some Lessons from FYR of Macedonia," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 16(2), pages 171-187.
    • Handle: RePEc:seb:journl:v:16:y:2018:i:2:p:171-187
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    References listed on IDEAS

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    Cited by:

    1. Williams Colin C. & Bezeredi Slavko, 2018. "Explaining and Tackling Under-Declared Employment in FYR Macedonia: The Employers Perspective," South East European Journal of Economics and Business, Sciendo, vol. 13(2), pages 19-31, December.
    2. Bejaković Predrag, 2017. "How to measure the unmeasurable: Project Grey developing capacities and capabilities for tackling undeclared work," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 3(2), pages 20-38, December.
    3. C Williams, Colin, 2021. "Explaining And Tackling Undeclared Work In South East Europe: Lessons From A 2019 Eurobarometer Survey," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 12(1), pages 1-18.

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    More about this item

    Keywords

    Informal Sector; Tax Morale; Tax Evasion; FYROM; South-East Europe;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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