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In the Shadow of the State – The Informal Economy and Informal Economy Labor Force

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  • Friedrich Schneider

    (Johannes Kepler University of Linz)

Abstract

In this paper, the main focus lies on the informal economy and on work in the shadow. The most influential factors on the informal economy are tax policies and state regulation. The size of the informal economy was decreasing over the period 1999 to 2007, from 34.0% to 31.2% for 161 countries (unweighted average). Furthermore, economic opportunities, taxes and regulations, the general situation on the labor market, and unemployment are crucial for an understanding of the dynamics of the shadow labor force. In contrast with the decrease of the informal economy (value added figures), the informal economy labor force increased for most countries over the period 1999 to 2007.

Suggested Citation

  • 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.
    • Handle: RePEc:cmn:journl:y:2014:i:4:p:227-248
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    References listed on IDEAS

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    Cited by:

    1. Petra Koudelkova & Wadim Strielkowski & Denisa Hejlova, 2015. "Corruption and System Change in the Czech Republic: Firm-level Evidence," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 25-46, March.
    2. Matej Kacaljak, 2015. "Tackling Illegal Activities through Tax Law – Al Capone Case Study," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 47-56, March.
    3. Zimčík Petr, 2016. "Economic Growth and Budget Constraints: EU Countries Panel Data Analysis," Review of Economic Perspectives, Sciendo, vol. 16(2), pages 87-101, June.

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