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Tackling the Participation of the Unemployed in Paid Informal Work: A Critical Evaluation of the Deterrence Approach

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  • Colin C Williams

    (Department of Geography, University of Leicester, Leicester LE1 7RH, England)

Abstract

In this paper I evaluate critically the use of deterrence to tackle the participation of the unemployed in paid informal work. On the basis of the assumption that the paid informal work of the unemployed is low-paid employment conducted for unadulterated economic reasons, the aim is to deter these rational economic actors by ensuring that the expected cost of being caught and punished is greater than the benefit of participating in such activity. Using structured interviews with the unemployed in UK lower income urban neighbourhoods, however, I found that pure economic motivations do not predominate when the unemployed participate in this work. Instead, such work is principally used to help out others, or to cement or forge social networks, or both. In consequence, I argue that there is a need to couple deterrence with the provision of alternative coping mechanisms in order to eradicate paid informal work. I conclude by proposing several policy initiatives that could act as a substitute for such work.

Suggested Citation

  • Colin C Williams, 2001. "Tackling the Participation of the Unemployed in Paid Informal Work: A Critical Evaluation of the Deterrence Approach," Environment and Planning C, , vol. 19(5), pages 729-749, October.
    • Handle: RePEc:sae:envirc:v:19:y:2001:i:5:p:729-749
    DOI: 10.1068/c14m
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    References listed on IDEAS

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    1. Edgar L. Feige, 1979. "How Big Is the Irregular Economy?," Challenge, Taylor & Francis Journals, vol. 22(5), pages 5-13, November.
    2. Weigel, Russell H. & Hessing, Dick J. & Elffers, Henk, 1987. "Tax evasion research: A critical appraisal and theoretical model," Journal of Economic Psychology, Elsevier, vol. 8(2), pages 215-235, June.
    3. Enrico A. Marcelli & Manuel Pastor & Pascale M. Joassart, 1999. "Estimating the Effects of Informal Economic Activity: Evidence from Los Angeles County," Journal of Economic Issues, Taylor & Francis Journals, vol. 33(3), pages 579-607, September.
    4. Colin Williams & Jan Windebank, 2001. "Reconceptualising Paid Informal Exchange: Some Lessons from English Cities," Environment and Planning A, , vol. 33(1), pages 121-140, January.
    5. C C Williams, 1996. "Local Exchange and Trading Systems: A New Source of Work and Credit for the Poor and Unemployed?," Environment and Planning A, , vol. 28(8), pages 1395-1415, August.
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    Cited by:

    1. Krasniqi Besnik A. & Williams Colin C., 2017. "Explaining individual- and country-level variations in unregistered employment using a multi-level model: evidence from 35 Eurasian countries," South East European Journal of Economics and Business, Sciendo, vol. 12(2), pages 61-72, December.
    2. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    3. Colin C. Williams & Ioana A. Horodnic, 2015. "Who Participates in the Undeclared Economy in South-Eastern Europe? An Evaluation of the Marginalization Thesis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 13(2), pages 157-175.
    4. Colin C. Williams & Ioana Horodnic, 2015. "Are Marginalised Populations More Likely to Engage in Undeclared Work in the Nordic Countries?," Sociological Research Online, , vol. 20(3), pages 15-29, August.
    5. Iain W. Long & Vito Polito, 2017. "Job Search, Unemployment Protection and Informal Work in Advanced Economies," CESifo Working Paper Series 6763, CESifo.
    6. Birgit Pfau‐Effinger, 2009. "Varieties of Undeclared Work in European Societies," British Journal of Industrial Relations, London School of Economics, vol. 47(1), pages 79-99, March.
    7. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.
    8. Colin C. Williams & Friedrich Schneider, 2016. "Measuring the Global Shadow Economy," Books, Edward Elgar Publishing, number 16551.

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