Tackling Undeclared Work In The European Union: Policy Report, Colin C. Williams
Aug 2019
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
Jul 2019
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
Jul 2019
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 …
Cross-Border Concerted And Joint Inspections In The Fight Against Undeclared Work, Colin C. Williams
Jul 2019
Cross-Border Concerted And Joint Inspections In The Fight Against Undeclared Work, Colin C. Williams
Colin C Williams
The European Platform Tackling Undeclared Work organised a Thematic Review Workshop in Portugal on ‘Cross-border concerted and joint inspections’ between 28 February and 1 March 2019 (see Executive Summary here). It was hosted by the Authority for Working Conditions (Autoridade para as Condições do Trabalho [ACT]). The aim was to share knowledge and experience among Platform members around a specific component of cross-border activities: concerted and joint inspections. Participants from 22 countries attended, including national ministries, labour inspectorates, regional administrative agencies and tax authorities. The workshop was the initial stage in a larger, mutual learning process and will generate further …
Future Role And Competence Profile Of Labour Inspectorates, Colin C. Williams
Jun 2019
Future Role And Competence Profile Of Labour Inspectorates, Colin C. Williams
Colin C Williams
The transformation of undeclared work into declared work using a combination of preventative and deterrence measures has significant implications for the future role of enforcement authorities1, and the skills and competencies required.
This thematic review workshop (TRW) will provide Platform members with an opportunity to engage in mutual learning and share understanding of the key human resource management issues for both inspectorates as well as inspectors. These issues arise from transforming undeclared work into declared work, the adoption of a wider range of deterrence and preventative approaches and achieving a good balance between deterrence and prevention. In addition, enforcement authorities …
Preventative Approaches To Tackle Undeclared Work, With A Focus Upon Tax Rebates And Notification Letters: Executive Summary, Colin C. Williams
Jun 2019
Preventative Approaches To Tackle Undeclared Work, With A Focus Upon Tax Rebates And Notification Letters: Executive Summary, Colin C. Williams
Colin C Williams
No abstract provided.
Shadow Economy: Definitions, Terms And Theoretical Considerations, Colin C. Williams
May 2019
Shadow Economy: Definitions, Terms And Theoretical Considerations, Colin C. Williams
Colin C Williams
The last decades, many scholars highlighted the shadow economic activities, regarding their disadvantages (unemployment, impoverishment etc) and advantages (intensifies competition, flexibility in employment etc). During the financial crisis, informal activities rose in noisy way, which triggered the development of special definitions to describe a wide range of actions which in turn have gradually configured and updated the content of the shadow economy term. In this paper we present the theoretical background of the shadow economy term, by selecting the main worldwide literature published from 1973 to 2018. Many studies have tried to definite the shadow economy term but none has …
Diagnostic Report On Undeclared Work In Kosovo, Colin C. Williams
Apr 2019
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
Mar 2019
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
Jan 2019
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, …
Tackling Undeclared Work In The Agricultural Sector, Colin C. Williams
Nov 2018
Tackling Undeclared Work In The Agricultural Sector, Colin C. Williams
Colin C Williams
This study evaluates the prevalence, distribution and characteristics of undeclared work in the agricultural, forestry and fishing sector (henceforth ‘agricultural sector’) in the EU and how this can be tackled. To do so, the prevalence, distribution and characteristics of undeclared work in the agricultural sector, along with its systemic drivers, are analysed. This analysis then provides the evidence base for an analysis of how undeclared work can be tackled. To identify how to achieve this, an analysis is undertaken of the legislative and institutional frameworks, of the policy approaches for tackling undeclared work in the agricultural sector, and an evidence-based …
Elements Of A Preventative Approach Towards Undeclared Work: An Evaluation Of Service Vouchers And Awareness Raising Campaigns, Colin C. Williams
May 2018
Elements Of A Preventative Approach Towards Undeclared Work: An Evaluation Of Service Vouchers And Awareness Raising Campaigns, Colin C. Williams
Colin C Williams
1. Introduction
The aim of this study is to review the range of preventative approaches for tackling undeclared work available to Member States, and to focus upon two types of preventative measure, namely service vouchers and the use of awareness raising campaigns.
2. Rationales for a preventative approach
· The rationale for a preventative approach is to shift away from resolving problems after they have occurred towards preventing non-compliance in the first place.
· Article 1 of Decision (EU) 2016/3441, establishing the Platform, explicitly encourages such a preventative approach. It states that ‘”tackling”, in relation to undeclared work, means preventing, …
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
Apr 2018
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
Apr 2018
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
Elements Of A Preventative Approach Towards Undeclared Work: An Evaluation Of Service Vouchers And Awareness Raising Campaigns - Input Paper To Thematic Discussion, Colin C. Williams
Apr 2018
Elements Of A Preventative Approach Towards Undeclared Work: An Evaluation Of Service Vouchers And Awareness Raising Campaigns - Input Paper To Thematic Discussion, Colin C. Williams
Colin C Williams
The objective of the thematic discussion on preventative measures for tackling undeclared work, focusing on both service vouchers and awareness raising campaigns, is (i) to exchange information on what works and what does not, (ii) to generate knowledge about these preventative measures, and (iii) to explore how the Platform activities can contribute to developing a preventative approach towards undeclared work.
This thematic discussion will focus attention on three key issues. In Part 1, we will address
an issue everyone is aware of but until now has not been discussed, namely why preventative measures are not commonly used in Member States …
Tackling Salary Under-Reporting In Croatia: Evidence From Employer And Employee Surveys, Colin C. Williams
Mar 2018
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, …
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
Dec 2017
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 …
European Platform Undeclared Work 2017 Platform Survey Report: Organisational Characteristics Of Enforcement Bodies, Measures Adopted To Tackle Undeclared Work, And The Use Of Databases And Digital Tools, Colin C. Williams
Oct 2017
European Platform Undeclared Work 2017 Platform Survey Report: Organisational Characteristics Of Enforcement Bodies, Measures Adopted To Tackle Undeclared Work, And The Use Of Databases And Digital Tools, Colin C. Williams
Colin C Williams
This report presents the main findings of the first online survey of members of the European Platform Tackling Undeclared Work. A total of 23 Member States responded.
Organisational characteristics of enforcement bodies
Undeclared work covers paid activities that are lawful as regards their nature but are not declared to public authorities so as to evade either payment of taxes, social security contributions and/or labour laws. In three-quarters of Member States, responsibility for these three forms of evasion lies in separate public authorities, with each having separate targets and key performance indicators (KPIs). The outcome is a departmental ‘silos’ approach, and …
Under-Declaring Work, Falsely Declaring Work: Under-Declared Employment In The European Union, Colin C. Williams, Ioana Horodnic
Sep 2017
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 …
Replantar Un Campo: Derecho Internacional Del Trabajo Para El Siglo Xxi, Lance A. Compa
Sep 2017
Replantar Un Campo: Derecho Internacional Del Trabajo Para El Siglo Xxi, Lance A. Compa
Lance A Compa
No abstract provided.
Re-Planting A Field: International Labour Law For The Twenty-First Century, Lance A. Compa
Sep 2017
Re-Planting A Field: International Labour Law For The Twenty-First Century, Lance A. Compa
Lance A Compa
[Excerpt] In this talk I want to trace the development of the field and how international labour law has taken root in five areas: 1) trade legislation (namely, the US and EU Generalized System of Preferences), 2) trade agreements, 3) international organizations, 4) corporate social responsibility, and 5) lawsuits in national courts. In each, I try to give one or two examples of how international labour law works in practice. But first, some background on the international labour law field and my involvement with it.
Tackling Undeclared Work In Southeast Europe: Knowledge-Informed Policy Responses, Colin C. Williams
Aug 2017
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 …
Greypolicybrief2_Macedonia.Pdf, Colin C. Williams, Peter Rodgers, Ruslan Stefanov
Aug 2017
Greypolicybrief2_Macedonia.Pdf, Colin C. Williams, Peter Rodgers, Ruslan Stefanov
Colin C Williams
KEY POINTS
Ø Undeclared work hasdeep roots in FYR of Macedonia. 1 in 16 adults and 1 in 8 of the employed engage in undeclared work. The use of informal connections to circumvent formal institutions is practiced by 35% of Macedonians.
Ø Formal institutions in the country are underdeveloped. Unemployment also remains unusually high compared with the EU average.
Ø The traditional repression approach to tackling undeclared work, which has been prioritised so far by the authorities, is ineffective.
Ø Increasing penalties and surveillance/ control should at the very least be supplemented by public awareness …
Tackling Undeclared Work In Bulgaria: Knowledge-Informed Policy Responses, Ruslan Stefanov, Colin C. Williams, Peter Rodgers
Aug 2017
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
Jul 2017
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
Jul 2017
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 …
Illegitimate Economic Practices In Fyr Macedonia, Colin C. Williams, Slavko Bezeredi
May 2017
Illegitimate Economic Practices In Fyr Macedonia, Colin C. Williams, Slavko Bezeredi
Colin C Williams
This report presents the findings of a survey on illegitimate economic practices in FYR Macedonia conducted between August and October 2015. This representative survey of 2,014 citizens focused on their experiences with undeclared work, envelope wages and the practice of ‘pulling strings’, as well as on their opinion about these types of non-compliant behaviour.
According to the respondents, non-compliant practices are strongly ingrained in Macedonian society. Some 35% use personal connections in order to circumvent rules and procedures, 17.7% purchase undeclared goods and services, 6.1% work in the undeclared economy and 13% of employees receive envelope wages from their employer. …
Myth: Hard Work And Credentials Determine Employment Opportunities
Feb 2016
Myth: Hard Work And Credentials Determine Employment Opportunities
Alev Dudek
"The way one's career develops has little to do with what one went to school for, envisioned, or carefully planned. Careers generally result from coincidence. Regardless of these facts, job seekers are told to endure extensive career testing and planning, or they are asked to create artificial networks that seldom lead to more than frustration. They are given tests that allegedly determine which careers a particular individual would excel in and be a good fit for based on his or her skills and interests, as if the individual would not excel in other careers as much, or as if being …
International Migration And The Welfare State: Asian Perspectives, Noel Gaston, Gulasekaran Rajaguru
Jun 2014
International Migration And The Welfare State: Asian Perspectives, Noel Gaston, Gulasekaran Rajaguru
Gulasekaran Rajaguru
Immigration is a controversial topic in Australia and some of its Asian neighbours. Given the potential impact on native welfare, such as effects on relative wages and unemployment, there has been political mobilisation on the immigration question. The presence of a redistributive welfare state in all major immigrant host countries creates yet another margin on which immigration affects native welfare. The focus of the paper is whether a large intake of immigrants leads to a reduction in welfare state effort. It is often argued that steady increases in immigration lead to public pressure for stricter immigration controls or for less …
Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz
Aug 2013
Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz
Justin Schwartz
Why are most capitalist enterprises of any size organized as authoritarian bureaucracies rather than incorporating genuine employee participation that would give the workers real authority? Even firms with employee participation programs leave virtually all decision-making power in the hands of management. The standard answer is that hierarchy is more economically efficient than any sort of genuine participation, so that participatory firms would be less productive and lose out to more traditional competitors. This answer is indefensible. After surveying the history, legal status, and varieties of employee participation, I examine and reject as question-begging the argument that the rarity of genuine …
