The paper aims to analyze the causes or the motivations of the households’ informal economy activities and to estimate the size of the Romanian informal economy. Using data for Romania, it was found that people perceived high taxes as the main cause of the informal activities. The data...

The informal sector consists of productive units characterised by a low level of organisation, by a fuzzy separation between labour and capital and by labour relations based on kinship or social relationship rather than formal contracts. In order to reveal the informal economy determinants in...

Having in view the three main methods for the estimation of the informal economy's size, the study focuses in the first part on data and methodological problems, trying at the same time to outline a few behavioral aspects by using only simple simulation models. Thus, based on a 288-sample and...

Among economists it is widely believed that high tax rates and ineffective tax collection by the government are the main causes contributing to the rise of the informal economy. Economists have already established two relationships, at least empirically demonstrated, between tax rates and tax...

Based on two Romanian household surveys, we analyse the structure of households’ income by sources: main job, secondary job, and hidden activities. After conceptual clarification and explanation of the methodology we used, we estimate the size of informal economy, analyse the relationship...

Using a Romanian household survey, the authors analysed the structure of households' income by sources (main job, secondary job, and informal activities), beginning by focusing on the data and methodological problems, certain clarifications being necessary. Afterwards, the size of informal...