The Shadow Economy and Shadow Labor Force: A Survey of Recent Developments

Arbeitspapier

This survey presents the various methods to estimate the size of the shadow economy, their strengths and weaknesses and the estimation results. The purpose of the survey is threefold. Firstly, it demonstrates that no ideal method to estimate the size and development of the shadow economy exists. Because of its flexibility, the MIMIC method used to get macro-estimates of the size of the shadow economy is discussed in greater detail. Secondly, the paper focuses on the definition and causal factors of the shadow economy as well as on a comparison of the size of the shadow economy using different estimation methods. Thirdly, estimations of the size of the shadow economy and shadow labor force are presented and discussed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 8278

Classification and Topics

• Classification: Wirtschaft ; Positive Analysis of Policy Formulation and Implementation ; Informal Economy; Underground Economy ; Structure, Scope, and Performance of Government ; Tax Evasion and Avoidance ; Illegal Behavior and the Enforcement of Law ; Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
• Subject: shadow economy estimates ; shadow labor force ; MIMIC approach ; methods to estimate the shadow economy ; advantages and disadvantages of the measurement methods ; shadow labor force and unemployment ; micro studies on shadow labor force

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schneider, Friedrich
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/101857
• Last update: 10.03.2025, 11:43 AM CET