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Size and Development of the Shadow Economy in Germany, Austria and Other oecd-Countries. Some Preliminary Findings

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  • Friedrich Schneider

Abstract

The size and development of the shadow economy of Germany, Austria and other oecd-countries is estimated, using various estimation procedures. An increased burden of taxation and social security payments, combined with intensive labor market regulation, quality of state institutions and the tax morale are the driving forces for the shadow economy. Moreover, the results of recent surveys for Germany and Austria demonstrate, that the readiness to undertake illicit employment as well as its acceptance are high in both countries. Finally, conclusions are made about the effect of the shadow economy on the official one and incentive oriented policy means are presented, so that the “black” value added can be transformed into official value added.

Suggested Citation

  • Friedrich Schneider, 2009. "Size and Development of the Shadow Economy in Germany, Austria and Other oecd-Countries. Some Preliminary Findings," Revue économique, Presses de Sciences-Po, vol. 60(5), pages 1079-1116.
  • Handle: RePEc:cai:recosp:reco_605_1079
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    References listed on IDEAS

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    Cited by:

    1. Feige, Edgar L., 2015. "Reflections on the meaning and measurement of Unobserved Economies: What do we really know about the “Shadow Economy”?," MPRA Paper 68466, University Library of Munich, Germany.
    2. Hernandez, Diego & Rudolph, Alexandra, 2015. "Modern day slavery: What drives human trafficking in Europe?," European Journal of Political Economy, Elsevier, vol. 38(C), pages 118-139.
    3. Philippe Adair, 2012. "The Non-Observed Economy in the European Union Countries (EU-15): A Comparative Analysis of Estimates," Chapters,in: Tax Evasion and the Shadow Economy, chapter 5 Edward Elgar Publishing.
    4. Schneider, Friedrich, 2012. "The Shadow Economy and Work in the Shadow: What Do We (Not) Know?," IZA Discussion Papers 6423, Institute for the Study of Labor (IZA).
    5. 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.
    6. Michael Böheim & Heinz Handler & Margit Schratzenstaller, 2010. "Options for Revenue-based Fiscal Consolidation," Austrian Economic Quarterly, WIFO, vol. 15(2), pages 231-244, July.
    7. Feige, Edgar L., 2016. "Professor Schneider's Shadow Economy:What do we really know? A Rejoinder," MPRA Paper 71903, University Library of Munich, Germany.
    8. Colin C. Williams & Friedrich Schneider, 2016. "Measuring the Global Shadow Economy," Books, Edward Elgar Publishing, number 16551.

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