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In From the Shadow - Integrating Europe's Informal Labor (Paperback, New)
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In From the Shadow - Integrating Europe's Informal Labor (Paperback, New)
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What to do about the extent of unregulated informal employment and
the size of the shadow economy is a dilemma that has been gaining
urgency, particularly in Europe's periphery. The forces that
accompany globalization put a premium on mobility and
skill-renewal. Rapid population ageing will require that people
work longer and be far more productive. To achieve this, social and
economic institutions have to be more pro-employment, encouraging
greater participation in the formal economy. And looking ahead,
public financial resources will be increasingly scarce, giving
urgency to measures that can significantly and sustainably increase
tax revenue. This book is about workers in Europe who earn a living
working full or part-time in untaxed markets for goods, services
and labor. Their activities are not registered as part of the
economy, and because they go unrecorded, they are also unregulated.
This makes them illegal although not in essence criminal. Some call
this the underground economy, black market or the shadow economy.
Widespread informal employment in the shadow economy posses
problems for individuals and their families, but it is also a
problem for firms and society. This volume presents the rationale
and steps policy makers in the EU's newest member countries should
take to bring as much economic activity in from the shadow economy
as they can. The authors venture a general conclusion: Although it
may be necessary to improve the structural incentives created by
the structure of taxation, labor market regulation, and social
protection policies, doing so is not sufficient to achieve real
improvement. As important, is a government's credibility in the
eyes of working people in carrying out the state s unique and
critical role of providing and maintaining public goods. The
process of improving governance and increasing institutional
credibility is long and difficult, but key to changing the
circumstances that lead people into the shadowy unregulated and
untaxed markets. Deriving specific policy guidance and
recommendations from rigorous analysis using administrative and
unit-level survey data the book draws a set of general policy
suggestions for EU members, old and new, as well as those who
aspire to join the Union. Although aimed specifically at emerging
Europe, this policy guidance will resonate with decision makers in
middle and upper-middle income countries in other parts of the
world."
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