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The Shadow Economy: Challenges to Economic and Social Policy

In: Formalizing the Shadow Economy in Serbia

Author

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  • Mihail Arandarenko

    (University of Belgrade)

Abstract

This chapter provides a brief summary of the development of the shadow economy in Serbia, which serves as a reminder of the multi-faceted, heterogeneous, and simultaneously stubborn and deeply rooted nature of this phenomenon. Findings about the volume, structure, and features of informal employment are of great importance in designing economic and social policies aimed at tackling the shadow economy. In the early 1990s the shadow economy became an acceptable survival mechanism for businesses, entrepreneurs, and households, in answer to the multiple shocks that they faced. Today informal employment is also last refuge of those forced out of the formal economy during the transition and of traditionally excluded groups. Although current economic conditions are much more favourable than those that prevailed during the last decade of the twentieth century, government authorities and economic policymakers are yet to systematically tackle this issue.

Suggested Citation

  • Mihail Arandarenko, 2015. "The Shadow Economy: Challenges to Economic and Social Policy," Contributions to Economics, in: Gorana Krstić & Friedrich Schneider (ed.), Formalizing the Shadow Economy in Serbia, edition 127, chapter 0, pages 5-12, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-13437-6_2
    DOI: 10.1007/978-3-319-13437-6_2
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    Cited by:

    1. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.
    2. Frey Barbara & Škrinjarić Bruno & Budak Jelena, 2022. "Perceptions of Corruption and Informality Among Businesspeople," South East European Journal of Economics and Business, Sciendo, vol. 17(2), pages 49-66, December.

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