What is it about?

To tackle the undeclared economy, an emergent literature has called for the dominant “rational economic actor” approach, which increases the sanctions and risk of detection, to be replaced and/or complemented by a “social actor” approach that fosters citizens’ commitment to compliance.

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Why is it important?

Reporting two waves of the Eurobarometer survey conducted in 2007 and 2013 across Europe, fixed-effects logistic regression analysis reveals that although both approaches reduce participation in undeclared work, the strength of the impact of deterrents on the likelihood of participation in undeclared work has weakened between 2007 and 2013, but has strengthened for vertical and horizontal trust.


Shows government approaches need to shift more towards building trust and away from imposing penalties

Professor Colin C Williams
University of Sheffield

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This page is a summary of: Tackling undeclared work in the European Union: beyond the rational economic actor approach, Policy Studies, August 2019, Taylor & Francis, DOI: 10.1080/01442872.2019.1649384.
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