scholarly journals Undeclared Work – Evidence from France

Author(s):  
Laila AitBihiOuali ◽  
Olivier Bargain
Keyword(s):  
2017 ◽  
Vol 37 (3/4) ◽  
pp. 203-217 ◽  
Author(s):  
Jan Windebank ◽  
Ioana Alexandra Horodnic

Purpose France is a model of best practice in the European Union as regards policy to combat undeclared work. The purpose of this paper is to take the country as a case study to evaluate the competing explanations of why people engage in undeclared work which underpin such policy, namely, the dominant rational-economic-actor approach and the more recent social-actor approach. Design/methodology/approach To evaluate these approaches, the results of 1,027 interviews undertaken in 2013 with a representative sample of the French population are analysed. Findings The finding is that higher perceived penalties and risks of detection have no significant impact on the likelihood of conducting undeclared work in France. In contrast, the level of tax morale has a significant impact on engagement in the activity: the higher the tax morale, the lower is the likelihood of participation in the undeclared economy. Higher penalties and risks of detection only decrease the likelihood of participation in undeclared work amongst the small minority of the French population with very low tax morale. Practical implications Current policy in France to counter undeclared work is informed principally by the rational-economic-actor approach based on a highly developed infrastructure for detection and significant penalties alongside incentives to declare small-scale own-account work. The present analysis suggests that this approach needs to be supplemented with measures to improve citizens’ commitment to compliance by enhancing tax morale. Originality/value This case study of a country with a well-developed policy framework to combat undeclared work provides evidence to support the social-actor approach for informing policy change.


2013 ◽  
Vol 51 (6) ◽  
pp. 1161-1175 ◽  
Author(s):  
Colin C. Williams ◽  
Jan Windebank ◽  
Marijana Baric ◽  
Sara Nadin

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose The authors wanted to examine why undeclared workers had not received financial assistance in Europe during the pandemic and find the best way to help them and bring them out of the shadows. Design/methodology/approach To identify those whose paid work is entirely undeclared, a Eurobarometer survey of undeclared work in Europe is reported conducted in September 2019, just prior to the pandemic, and involving 27,565 face-to-face interviews in 28 European countries. Findings The paid work of one in every 132 citizens in Europe comprises wholly of undeclared work and one in 28 work at least some of the time in the undeclared economy. These workers have received no support, but they are more likely to be financially vulnerable. A high percentage of undeclared workers are widowed, divorced and living in households with multiple persons. Originality/value The authors argue that short-term support for these individuals could not only help them to survive the pandemic financially, but also transform undeclared work into declared work with long-term benefits for individuals and the wider economy.


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