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Tackling Undeclared Work In The European Union: Policy Report, Colin C. Williams
Tackling Undeclared Work In The European Union: Policy Report, Colin C. Williams
Colin C Williams
Undeclared work represents a persistent feature of contemporary economies and results in lost public revenue, lack of worker protection and unfair competition for legitimate businesses. Conventionally, undeclared work has been viewed as an individual criminal act, which is solved by governments increasing the penalties and risks of detection in order to discourage participation. This, however, only deals with the outcome (i.e., participation in undeclared work) and does not address the drivers of this behaviour.
This report explores the formal institutional failures which make undeclared work an acceptable behaviour in the eyes of citizens and, consequently, result in high participation in …
Tackling Undeclared Work Across Europe: Effective Solutions For Policy-Makers, Colin C. Williams
Tackling Undeclared Work Across Europe: Effective Solutions For Policy-Makers, Colin C. Williams
Colin C Williams
This document sets out examples of proven approaches
and practices that Platform members and observers
have used to tackle undeclared work in Europe. The
aim is to inspire national policy-makers with tried and
tested approaches and to provide sources of further
information of how to put these concrete examples into
action.
Shadows: Tackling Undeclared Work In The European Union, Ioana Horodnic, Colin C. Williams
Shadows: Tackling Undeclared Work In The European Union, Ioana Horodnic, Colin C. Williams
Colin C Williams
Across the member states of the European Union and beyond, paid transactions are occuring that are not declared to the state for tax, social security or labour law purposes. The practice is not a minority one. As a result, tackling undeclared work has become a core issue on the policy agendas of both governments and the European Commission, reflected in the establishment of the European Platform Tackling Undeclared Work.
How, therefore, can undeclared work be tackled? A review of the literature indicates two major distinct approaches. First, a rational economic actor approach that tackles undeclared work by ensuring that the …
Diagnostic Report On Undeclared Work In Kosovo, Colin C. Williams
Diagnostic Report On Undeclared Work In Kosovo, Colin C. Williams
Colin C Williams
This diagnostic report evaluates the extent, nature and drivers of undeclared work in Kosovo* followed by recommendations regarding how this sphere can be tackled.
Ifth Plenary Meeting Of The European Platform Tackling Undeclared Work Report On Tackling Under-Declared Employment In The European Union, Colin C. Williams
Ifth Plenary Meeting Of The European Platform Tackling Undeclared Work Report On Tackling Under-Declared Employment In The European Union, Colin C. Williams
Colin C Williams
The fifth Plenary meeting of the European Platform Tackling Undeclared Work was held in Brussels on 18-19 October 2018. The first day of this meeting was dedicated to the topic of tackling under-declared employment in the European Union. This report summarises the discussions at the workshop, which drew on the findings of two studies on this topic produced as part of the Platform’s work programme.
The objective of this thematic discussion on under-declared employment in the European Union was: (i) to exchange information on what works and what does not, (ii) to generate knowledge about under-declared employment, and (iii) to …
Institutional Asymmetry And The Acceptability Of Undeclared Work: Synthesis Report, Colin C. Williams
Institutional Asymmetry And The Acceptability Of Undeclared Work: Synthesis Report, Colin C. Williams
Colin C Williams
This report is part of the project SHADOWSwhich aims to investigate the effectiveness of different policy measures in reducing undeclared work. As such, the project evaluates not only the effectiveness of using a rational economic actor approach (that tackles undeclared work by ensuring that the payoff from undeclared work is outweighed by the costs), and a social actor approach (grounded in a view that undeclared work arises when tax morale is low), but also analyses the interaction effects (between deterrents and tax morale, and vertical and horizontal trust) in various contexts. This report focuses on the social actor approach, …
Diagnostic Report On Undeclared Work In Albania: Preliminary Report, Colin C. Williams
Diagnostic Report On Undeclared Work In Albania: Preliminary Report, Colin C. Williams
Colin C Williams
This diagnostic report evaluates the extent, nature and drivers of the undeclared economy in Albania. Based on desk-research and interviews with various stakeholders, this report sets the scene for a strategy and action plan for tackling undeclared work in Albania, presented in a separate document.
Explaining And Tackling Under-Declared Employment In Fyr Macedonia: The Employers Perspective, Colin C. Williams, Slavko Bezeredi
Explaining And Tackling Under-Declared Employment In Fyr Macedonia: The Employers Perspective, Colin C. Williams, Slavko Bezeredi
Colin C Williams
The aim of this paper is to evaluate how employers who illegally under-report their employees’ salaries to
evade paying the full tax and social contributions owed can be explained and tackled. These employers have
been conventionally explained as rational economic actors doing so when the benefits outweigh the costs,
and thus the solution is to increase the sanctions and/or probability of detection. An alternative social actor
approach, however, explains employers as under-reporting salaries because of their lack of both vertical trust
(i.e., their beliefs are not in symmetry with the laws and regulations) and horizontal trust (i.e., they believe
many …
Does Trust Prevent Undeclared Work? An Evaluation Of The Social Actor Approach, Colin C. Williams
Does Trust Prevent Undeclared Work? An Evaluation Of The Social Actor Approach, Colin C. Williams
Colin C Williams
In recent decades, a burgeoning literature has brought out of the shadows the magnitude of the undeclared economy. This reveals that the undeclared economy is a persistent feature of contemporary economies. With the equivalent of 17.9 per cent of GDP not declared to the authorities in the European Union in 2016 [1], undeclared work representing 14.3 per cent of gross value added in the private sector in 2013 [2] and 4 per cent of EU28 citizens conducting undeclared work [3], tackling the undeclared economy is not some minor issue. Addressing this practice is important. This is not only because of …
Elements Of A Preventative Approach Towards Undeclared Work: An Evaluation Of Service Vouchers And Awareness Raising Campaigns: Outputs From Plenary Discussion Of The European Platform Tackling Undeclared Work, Colin C. Williams
Colin C Williams
The fourth Plenary meeting of the European Platform Tackling Undeclared Work was held in Brussels on 8-9 March 2018. The first day of this meeting was dedicated to the topic of the preventative approach towards tackling undeclared work, with a focus upon service vouchers and awareness raising. This report summarises the discussions at the meeting, drawing also on the forthcoming study on this topic which has been developed as part of the Platform’s work programme
2018 European Platform Undeclared Work Survey Report: Obstacles To Tackling Undeclared Work At The Cross-Border And National Levels, Bilateral And National Agreements, And Complaint Reporting Tools, Colin C. Williams
Colin C Williams
Responses were received from 45 authorities with responsibilities for tackling undeclared work in 25 Member States (MS), most of whom were labour inspectorates or Ministries of Labour. The issues covered: obstacles to tackling undeclared work at the cross-border and national levels; the use of bilateral and multilateral agreements, and the use of complaint reporting tools in Member States
Tackling Salary Under-Reporting In Croatia: Evidence From Employer And Employee Surveys, Colin C. Williams
Tackling Salary Under-Reporting In Croatia: Evidence From Employer And Employee Surveys, Colin C. Williams
Colin C Williams
The aim of this paper is to evaluate how to tackle the illegal wage practice where formal
employers pay their formal employees an undeclared (envelope) wage in addition to their
official declared salary, which reduces the tax and social contributions paid to the authorities.
Until now, two competing policy approaches have been advocated, namely a conventional
rational economic actor approach which seeks to increase the perceived or actual penalties
and probability of being caught, and an emergent social actor approach that seeks to improve
tax morale. Reporting two nationally representative surveys of employers and employees
conducted in 2015 in Croatia, …
Do Deterrents Prevent Undeclared Work? An Evaluation Of The Rational Economic Actor Approach, Ioana Horodnic, Colin C. Williams
Do Deterrents Prevent Undeclared Work? An Evaluation Of The Rational Economic Actor Approach, Ioana Horodnic, Colin C. Williams
Colin C Williams
Across the member states of the European Union and beyond, paid transactions occur that are not declared to the state for tax, social security and/or labour law purposes when they should be declared. This is not a minority practice. The undeclared economy is estimated to be equivalent to 17.9 per cent of the EU28 GDP in 2016. Similarly, it is estimated that 9.3 per cent of total labour input in the private sector in the EU28 is undeclared and that undeclared work constitutes on average 14.3 per cent of gross value added in the private sector. Furthermore, in 2013, 4 …
An Evaluation Of The Scale Of Undeclared Work In The European Union And Is Structural Determinants: Estimates Using The Labour Input Method, Colin C. Williams, Josip Franic, Ioana Horodnic
An Evaluation Of The Scale Of Undeclared Work In The European Union And Is Structural Determinants: Estimates Using The Labour Input Method, Colin C. Williams, Josip Franic, Ioana Horodnic
Colin C Williams
On average, 11.6% of total labour input in the private sector in the EU is undeclared, and undeclared work constitutes on average 16.4% of gross value added (GVA) (the difference due to undeclared labour being concentrated in sectors with higher labour productivity).
These, however, are unweighted averages, and do not take into account the relative size of the labour force in each Member State. The weighted averages, therefore, are that 9.3% of total labour input in the private sector in the EU is undeclared, and undeclared work constitutes 14.3% of GVA in the private sector. The …
Under-Declaring Work, Falsely Declaring Work: Under-Declared Employment In The European Union, Colin C. Williams, Ioana Horodnic
Under-Declaring Work, Falsely Declaring Work: Under-Declared Employment In The European Union, Colin C. Williams, Ioana Horodnic
Colin C Williams
Under-declared employment occurs when a formal employer pays a formal employee an official declared wage but also an additional undeclared (‘envelope’) wage in order to evade the full social insurance and tax liabilities owed. The aim of this study is to evaluate the prevalence, characteristics and distribution of this fraudulent wage practice in the EU28, to explain its existence, to provide an evidence-based evaluation of the effectiveness of different policy approaches for tackling it, and propose a set of policy recommendations.
Prevalence, characteristics and distribution of under-declared employment
To evaluate the prevalence, characteristics and distribution of under-declared employment in the …
Tackling Undeclared Work In Southeast Europe: Knowledge-Informed Policy Responses, Colin C. Williams
Tackling Undeclared Work In Southeast Europe: Knowledge-Informed Policy Responses, Colin C. Williams
Colin C Williams
Ø Undeclared work is socially accepted and widely practiced in Bulgaria, Croatia, and the FYR of Macedonia.
Ø More than 1 in 5 adults in these countries acknowledge that they have bought goods and services on the undeclared economy in the prior year. More than 1 in 12 report that they have undertaken undeclared work, and more than 1 in 10 declared employees report that they receive from their employer in addition to their declared salary an additional undeclared ‘envelope’ wage.
Ø But undeclared work differs across and within the three countries. For every …
Tackling Undeclared Work In Bulgaria: Knowledge-Informed Policy Responses, Ruslan Stefanov, Colin C. Williams, Peter Rodgers
Tackling Undeclared Work In Bulgaria: Knowledge-Informed Policy Responses, Ruslan Stefanov, Colin C. Williams, Peter Rodgers
Colin C Williams
KEY POINTS
Ø Undeclared work is socially accepted and widely practiced in Bulgaria. The undeclared economy is estimated at roughly a third of GDP. Nearly one in ten people do some undeclared work.
Ø Undeclared work is motivated primarily by lack of trust between the people and the authorities.It involves mostly people who voluntarily exit the declared economy but also those that are excluded.
Ø The conventional repressive approach to tackling undeclared work has exhausted its effects in Bulgaria. It should be complemented with more curative, preventative and commitment policies.
Ø Policymakers …
Illegitimate Economic Practices In Bulgaria: Findings From A Representative Survey Of 2,005 Citizens, Colin C. Williams, Junhong Yang
Illegitimate Economic Practices In Bulgaria: Findings From A Representative Survey Of 2,005 Citizens, Colin C. Williams, Junhong Yang
Colin C Williams
This report presents the findings of a survey on illegitimate economic practices in Bulgaria conducted between July and October 2015. This representative survey of 2005 citizens focused on the experiences of Bulgarians with undeclared work, envelope wages and the practice of “pulling strings”, as well as on their opinion about these types of dishonest behaviour.
According to the respondents, illegitimate economic practices are strongly ingrained in Bulgarian society. According to the estimation of Schneider (2013), the undeclared economy accounts for 31% of GDP in Bulgaria in 2013, which is the highest estimation for any country in the EU-28. According to …
Tackling Undeclared Work In The Construction Industry: A Learning Resource, Colin C. Williams
Tackling Undeclared Work In The Construction Industry: A Learning Resource, Colin C. Williams
Colin C Williams
On 3 May 2017, the European Platform Tackling Undeclared Work organised a seminar in Brussels on Tools and approaches to deal with undeclared work in the construction sector. The seminar brought together Platform members and observers from 21 EU Member States (MS) and Norway (EEA) representing labour inspectorates and social security, tax and customs authorities, as well as national and European social partner representatives from the construction sector.
This learning resource paper describes the seminar outcomes. The first section looks at the extent and nature of undeclared work in the construction sector. This is followed by an overview of the …
Paying For Favours: Evaluating The Role Of Blat In Post-Soviet Ukraine, Colin C. Williams
Paying For Favours: Evaluating The Role Of Blat In Post-Soviet Ukraine, Colin C. Williams
Colin C Williams
To evaluate whether the illicit practice of using personal connections to
acquire goods and services, or to circumvent formal procedures, known as
blat in the Soviet era, persists in the post-Soviet world, 200 face-to-face
interviews conducted in the city of Mykolayiv in Ukraine are reported. The
finding is that personal networks are still commonly and widely used.
However, unlike Soviet era blat which was non-monetized friendly help,
control over access to assets and possessing personal connections to those
controlling access to assets, has become a commodity bought and sold for
illicit monetary payments. The paper concludes by discussing how this …
Envelope Wages In The European Union, Colin C. Williams
Envelope Wages In The European Union, Colin C. Williams
Colin C Williams
This article reveals how many formal employees in the European Union
receive from their formal employer not only a declared wage but also an undeclared
“envelope wage”. Reporting the results of a 2007 survey involving
26,659 face-to-face interviews, the authors find that one in 18 formal employees
receives an envelope wage from their formal employer, amounting to 25 per cent
of their gross pay on average. Such hybrid wage arrangements are ubiquitous,
but are more common in some countries, employee categories and types of firm
than others. The authors conclude by discussing the theoretical and policy implications
of these findings.
Informal Employment In Developed And Developing Economies: Perspectives And Policy Responses, Colin C. Williams
Informal Employment In Developed And Developing Economies: Perspectives And Policy Responses, Colin C. Williams
Colin C Williams
The aim of this introductory article is to provide a critical overview of
how informality has been defined and measured, together with selected findings
on its extent and character, and a summary of competing views regarding its role
in contemporary economies and how it can be tackled. The outcome is a set of
conceptual frameworks for understanding both the burgeoning literature on informal
employment and how each of the perspectives presented in this Special Issue
contributes to the advancement of knowledge on this subject so as to set the scene
for the articles that follow.
Blurring The Formal/Informal Economy Divide: Beyond A Dual Economies Approach, Colin C. Williams, Sara Nadin
Blurring The Formal/Informal Economy Divide: Beyond A Dual Economies Approach, Colin C. Williams, Sara Nadin
Colin C Williams
The need to integrate work beyond employment into discussions of labor practices is widely recognized. This has been so far largely achieved by adopting a dual economies perspective, which is criticized for depicting the formal and informal sectors as separate hostile worlds. To resolve this, an alternative “total social organization of labor” approach is here proposed that maintains the terms formal and informal as useful broad descriptors of different work relations, but recognizes a spectrum from purely formal to purely informal labor practices cross-cut by another spectrum from wholly monetized to wholly non-monetized labor practices. Reporting evidence from 861 face-to-face …
From Market Hegemony To Diverse Economies: Evaluating The Plurality Of Labour Practices In Ukraine, Colin C. Williams, Peter Rodgers
From Market Hegemony To Diverse Economies: Evaluating The Plurality Of Labour Practices In Ukraine, Colin C. Williams, Peter Rodgers
Colin C Williams
Drawing inspiration from a burgeoning corpus of scholars who have begun to question
the narrative of impending market hegemony, this paper seeks to further advance this
emergent ‘diverse economies’ literature by constructing a conceptual framework for
representing the multiple labour practices in economies. Transcending the simplistic
market/non-market dichotomy, this conceptualises multiple kinds of labour existing along
a spectrum from market-oriented to non-market oriented practices, which is cross-cut by
another spectrum ranging from wholly monetised to wholly non-monetised practices. The
resultant portrayal of a plurality of labour practices that seamlessly merge into each other
is then applied to understanding the types …
Work Beyond Employment: Representations Of Informal Economic Activities, Colin C. Williams, Sara Nadin
Work Beyond Employment: Representations Of Informal Economic Activities, Colin C. Williams, Sara Nadin
Colin C Williams
For much of the previous century, the informal sector was largely represented as a residue of a
previous mode of production confined to marginal populations and gradually disappearing due to
the inevitable and natural shift towards the formal economy across the globe. Over the past quarter
of a century, however, articles published in Work, Employment and Society have been at the forefront
of re-reading the informal sector. This article reveals how this body of literature has shown informal
economic activities to be a persistent and ubiquitous feature of the economic landscape, mapped
the complex and variable dynamics of formal and …