Artikel

Cash wage payments in transition economies: Consequences of envelope wages

In transition economies, a significant number of companies reduce their tax and social contributions by paying their staff an official salary, described in a registered formal employment agreement, and an extra, undeclared "envelope wage," via a verbal unwritten agreement. The consequences include a loss of government income and a lack of fair play for lawful companies. For employees, accepting under-reported wages reduces their access to credit and their social protections. Addressing this issue will help increase the quality of working conditions, strengthen trade unions, and reduce unfair competition.

Sprache
Englisch

Erschienen in
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2021 ; Bonn: Institute of Labor Economics (IZA)

Klassifikation
Wirtschaft
Informal Labor Markets
Particular Labor Markets: Public Policy
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Informal Economy; Underground Economy
Thema
envelope wages
informal employment
undeclared economy
tax evasion

Ereignis
Geistige Schöpfung
(wer)
Horodnic, Ioana Alexandra
Williams, Colin C.
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2021

DOI
doi:10.15185/izawol.280.v2
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Horodnic, Ioana Alexandra
  • Williams, Colin C.
  • Institute of Labor Economics (IZA)

Entstanden

  • 2021

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