This article seeks to explain the cross-national variations in the tendency of employers to underdeclared salaries by paying formal employees an undeclared (‘envelope') wage in addition to their official declared salary. Analysing the prevalence, size and nature of envelope wage payments...

To understand undeclared work and how to tackle it, this report examines the prevalence of undeclared work in the construction sector followed by how it can be tackled. This includes an outline of the policy initiatives being pursued as a result of the TUWIC (Tackling undeclared work in the...

The aim of this article is to evaluate the prevalence and distribution in the European Union of a little discussed illegitimate employment practice whereby employers pay their formal employees both an official declared salary and an undeclared ‘envelope' wage so as to evade the full tax and...

Although enforcement authorities play a key role in tackling undeclared work, social partners also have an interest in preventing undeclared work. Employer federations wish to tackle the unfair competition that results from other businesses operating in the undeclared economy and trade unions...

The current focus of state authorities is still heavily upon “deterring” undeclared work using measures that improve the probability of detection and the penalties imposed on those caught. However, this only deals with undeclared work once it has occurred. It is also important to prevent...

In recent years, it has been increasingly recognised that governments seeking to tackle undeclared work effectively should adopt a holistic approach. This seeks to coordinate strategy across the fields of labour, tax and social security law, and to use the full range of policy measures...

Undeclared work has deep 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. Formal institutions in the country are underdeveloped. Unemployment also...

Undeclared work has deep roots in Croatia. One in eleven declare to have done some fully undeclared work. Six out of ten though believe at least 20% of their compatriots violate tax and labour laws. The perception of the widespread nature of undeclared work and the lack of trust in formal...

Informal employment has been variously explained as resulting from: economic under-development and a lack of modernisation (modernisation theory); high taxes and state interference in the free market (neo-liberal theory) or inadequate levels of state intervention to protect citizens (political...