Survey on the Shadow Economy and Undeclared Earnings in OECD Countries
Address for correspondence: Lars P. Feld, University of Heidelberg, Alfred‐Weber‐Institut, Bergheimerstr. 58, 69115 Heidelberg, Germany. Tel.: +49 6221 54 3100; Fax: +49 6221 54 3578; e‐mail: lars.feld@awi.uni‐heidelberg.de
Abstract
Abstract. In most OECD countries the policy instrument of choice to prevent people from working in the shadows has been deterrence. While deterrence is well founded from a theoretical point of view, the empirical evidence on its success is weak: tax policies and state deregulation appear to work much better. The discussion of the recent literature underlines that in addition to economic opportunities, the overall situation in the labor market and unemployment are crucial for an understanding of the dynamics of the shadow economy.
Citing Literature
Number of times cited: 90
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