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The Shadow Economy: Illicit Work and Household Production: A Microanalysis of West Germany

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  • Merz, Joachim
  • Wolff, Klaus G

Abstract

This microanalysis of the shadow economy is on informal family income achieving strategies. In particular, the authors analyze both sexes' paid illicit work as well as unpaid work in household production based on the representative West German Sfb 3-Secondary Occupation Survey 1984. They estimate the influence of various socioeconomic variables including a legal occupation. As a result, illicit work and household production 'do-it-yourself' activities are important informal family income achieving strategies. The respective regional state of the formal economy or one's own activities in social networks is of greater importance for informal economic activities than an individual income from formal economic activities. Copyright 1993 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Merz, Joachim & Wolff, Klaus G, 1993. "The Shadow Economy: Illicit Work and Household Production: A Microanalysis of West Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 177-194, June.
  • Handle: RePEc:bla:revinw:v:39:y:1993:i:2:p:177-94
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    Citations

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    Cited by:

    1. Lars P. Feld & Friedrich Schneider, 2011. "Survey on the Shadow Economy and Undeclared Work in OECD Countries," Chapters,in: Handbook on the Shadow Economy, chapter 2 Edward Elgar Publishing.
    2. Friedrich Schneider, 2014. "In the Shadow of the State – The Informal Economy and Informal Economy Labor Force," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 227-248, December.
    3. Arbex, Marcelo, 2013. "Tax enforcement policies, tax evasion and time allocation," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(3), pages 285-293.
    4. Merz, Joachim, 1995. "MICSIM : Concept, Developments and Applications of a PC-Microsimulation Model for Research and Teaching," MPRA Paper 16029, University Library of Munich, Germany.
    5. Gilbert Mbara & Ryszard Kokoszczynski & Joanna Tyrowicz, 2017. "Striking a balance: optimal tax policy with labor market duality," GRAPE Working Papers 16, GRAPE Group for Research in Applied Economics.
    6. Eva Österbacka & Joachim Merz & Cathleen D. Zick, 2012. "Human capital investments in children –A comparative analysis of the role of parent-child shared time in selected countries," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 9(1), pages 120-143, November.
    7. John Anderson & Hendrik van den Berg, 1998. "Fiscal Decentralization and Government Size: An International Test for Leviathan Accounting for Unmeasured Economic Activity," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 5(2), pages 171-186, May.
    8. Joachim Merz, 1994. "Microdata Adjustment by the Minimum Information Loss Principle," FFB-Discussionpaper 10, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    9. Ivan Stoykov & Paraskeva Dimitrova, 1999. "The Hidden Economy – Measurement and Influence," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 3-43.
    10. Friedrich Schneider, 2013. "Size and Progression of the Shadow Economies of Turkey and Other OECD Countries from 2003 to 2013; Some New Facts," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 2(2), pages 83-116, May.
    11. Widmaier, Ulrich & Niggemann, Hiltrud & Merz, Joachim, 1994. "What makes the Difference between Unsuccessful and Successful Firms in the German Mechanical Engineering Industry?," MPRA Paper 7230, University Library of Munich, Germany.
    12. Gronau, Reuben, 1997. "The Theory of Home Production: The Past Ten Years," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 197-205, April.
    13. Bettina Sonnenberg & Michaela Riediger & Cornelia Wrzus & Gert G. Wagner, 2011. "Measuring Time Use in Surveys: How Valid Are Time Use Questions in Surveys? Concordance of Survey and Experience Sampling Measures," SOEPpapers on Multidisciplinary Panel Data Research 390, DIW Berlin, The German Socio-Economic Panel (SOEP).

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