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For a long time, it has been the declared aim in many countries to
fight tax evasion in all its different manifestations, from
undeclared work by cleaners and gardeners in private households to
tax evasion in the international capital markets. This study
focuses on the phenomenon of undeclared work and the case of
Germany, presenting the most comprehensive analysis of tax
non-compliance for Germany to date, based on surveys conducted by
the Rockwool Foundation. Theoretically, the analysis starts from
the standard model of tax evasion as being influenced by the
subjectively perceived extent of deterrence, the perceived marginal
tax burden and social norms. Evidence is provided on the impact of
deterrence and other factors on tax non-compliance, and several
descriptive statistics are presented to better illustrate the
natrure of undeclared work with regard to industry, region,
education and other socio-economic characteristics.
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