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The Size And Growth Of The Hidden Economy In Norway

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  • Arne Jon Isachsen
  • Steiner Strøm

Abstract

The present size of the hidden economy in Norway is between 4 and 6 percent of GDP, of which hidden labor income constitutes about half. A survey approach reveals that 4/5 of the population is of the opinion that people in general accept income from moonlighting that is not reported, and 2/3 believes that this share of acceptance is on the increase. Furthermore, surveys clearly show that hidden labor services are of satisfactory quality, that they mainly are paid for in cash, but with checks being increasingly used, and that buyers find it easier to obtain services from the hidden labor market than from the regular one. A shortening of the work week in order to alleviate unemployment may result in an increased supply of hidden labor.

Suggested Citation

  • Arne Jon Isachsen & Steiner Strøm, 1985. "The Size And Growth Of The Hidden Economy In Norway," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(1), pages 21-38, March.
  • Handle: RePEc:bla:revinw:v:31:y:1985:i:1:p:21-38
    DOI: 10.1111/j.1475-4991.1985.tb00496.x
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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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