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Tackling Undeclared Work in Bulgaria: Knowledge-Informed Policy Responses

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posted on 19.12.2017, 11:55 by Ruslan Stefanov, Colin C. Williams, Peter Rodgers
Undeclared work is socially accepted and widely practiced in Bulgaria. The undeclared economy is estimated at roughly a third of GDP. Nearly one in ten people do some undeclared work. Undeclared work is motivated primarily by lack of trust between the people and the authorities. It involves mostly people who voluntarily exit the declared economy but also those that are excluded. The conventional repressive approach to tackling undeclared work has exhausted its effects in Bulgaria. It should be complemented with more curative, preventative and commitment policies. Policymakers should consider not just the rational but also the social actor approach which tackles trust issues and the asymmetry between formal and informal rules. Authorities should continue modernising institutions and should increase social spending and public awareness campaigns.

Funding

This Policy Brief is an output of the European Commission’s Framework 7 Industry-Academia Partnerships Programme (IAPP) grant no. 611259 entitled ‘Out of the shadows: developing capacities and capabilities for tackling undeclared work in Bulgaria, Croatia and FYR Macedonia’ (GREY). The authors would like to thank the funders for providing the financial support to enable the research and writing of this policy brief.

History

Citation

GREY Policy Brief, No. 1, 2017. SSRN Electronic Journal, 2017

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/School of Management

Published in

GREY Policy Brief

eissn

1556-5068

Acceptance date

25/08/2017

Available date

19/12/2017

Publisher version

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3026332

Language

en