This study focuses on productive activities that are legal in principlebut which are not declared to the authorities. In the debate inGermany various terms are used to describe these activities, themost common being Schwarzarbeit (clandestine employment),Schattenwirtschaft (underground economy)...

The extent of low-wage work in Germany is hotly debated. In international comparisons fromthe mid-90s, Germany is often classified as a country with a low wage dispersion. Comparedto the USA and UK, Germany has a relatively equal income structure and a small proportionof low-paid workers (OECD 1996;...