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Has The Relative Share of Shadow Economy in Bulgaria Been Reduced: Labour Force Evaluations

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  • Emilia Chengelova

    (BAS, Sofia, Bulgaria)

Abstract

The article presents a comparative analysis of the scope and distribution of the “shadow economy” in Bulgaria. Analysis of employees’ evaluations allows to make the general conclu­sion that in 2014 in comparison with 2010 the share of “shadow economy” in Bulgaria was reduced, although it remains one of the high­est levels among Member States EU. For 2010- 2014, there are visible trends to reduce the typical shady practices in two areas of economic activity - labor and social security legislation. However, informality is very “plastic” and tends to modify, as in 2014, the most common shadow practice is working contract of employment for a certain amount plus verbal agreements for high­er payment of tax-free cash. So regardless of the emerging trend, in 2014 “shadow economy” continues to be a permanent element of the Bul­garian society.

Suggested Citation

  • Emilia Chengelova, 2015. "Has The Relative Share of Shadow Economy in Bulgaria Been Reduced: Labour Force Evaluations," Ikonomiceski i Sotsialni Alternativi, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 26-39, October.
    • Handle: RePEc:nwe:iisabg:y:2015:i:3:p:26-39
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    More about this item

    Keywords

    shadow economy; labour force evaluations;

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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