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Who Participates in the Undeclared Economy in South-Eastern Europe? An Evaluation of the Marginalization Thesis

Author

Listed:
  • Colin C. Williams

    (University of Sheffield, U.K.)

  • Ioana A. Horodnic

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

To evaluate the "marginalization thesis" which posits that marginalized populations are more likely to engage in the undeclared economy, a 2013 Eurobarometer survey of six South-East European countries is analysed. Finding that some marginalized populations (e.g., those having difficulties paying household bills, the unemployed, younger people) are significantly more likely to participate in undeclared work, but others are not (e.g., poorer nations, women, those with fewer years in formal education, those living in rural areas), the outcome is a call for a more variegated and nuanced understanding of the marginalization thesis. The paper then discusses the theoretical and policy implications.

Suggested Citation

  • Colin C. Williams & Ioana A. Horodnic, 2015. "Who Participates in the Undeclared Economy in South-Eastern Europe? An Evaluation of the Marginalization Thesis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 13(2), pages 157-175.
  • Handle: RePEc:seb:journl:v:13:y:2015:i:2:p:157-175
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    File URL: http://www.asecu.gr/Seeje/issue25/issue25-williams-horodnic.pdf
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    References listed on IDEAS

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    4. Hug, Simon & Spörri, Franziska, 2011. "Referendums, trust, and tax evasion," European Journal of Political Economy, Elsevier, vol. 27(1), pages 120-131, March.
    5. Olumide TAIWO, 2013. "Employment choice and mobility in multi-sector labour markets: Theoretical model and evidence from Ghana," International Labour Review, International Labour Organization, vol. 152(3-4), pages 469-492, December.
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    1. repec:nwe:eajour:y:2017:i:4:p:515-531 is not listed on IDEAS

    More about this item

    Keywords

    Informal Economy; Underground Sector; Shadow Economy; Marginalized; Baltic region;

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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