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Tackling the Undeclared Economy in Croatia

Author

Listed:
  • Marijana Baric

    (School of Management, University of Sheffield)

  • Colin C. Williams

    (School of Management, University of Sheffield)

Abstract

To evaluate how undeclared work is being tackled in Croatia this paper reports an e-survey and in-depth interviews with key stakeholders in Croatia. It is revealed that, compared with the European Economic Area countries, Croatia has a weak institutional infrastructure for tackling undeclared work and pursues a narrower range of policy measures. The outcome is a call to develop a single body to better coordinate actions to tackle the undeclared economy in Croatia and for a shift towards an approach that seeks to provide gateways to formalisation. Furthermore, Croatia needs to modernise its work and welfare regime through higher levels of state expenditure in the labour market and social protection, coupled with redistribution via social transfers so as to construct a more equal society.

Suggested Citation

  • Marijana Baric & Colin C. Williams, 2013. "Tackling the Undeclared Economy in Croatia," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 11(1), pages 7-36.
    • Handle: RePEc:seb:journl:v:11:y:2013:i:1:p:7-36
    as

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    File URL: http://www.asecu.gr/Seeje/issue20/issue20-baric.pdf
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    References listed on IDEAS

    as
    1. Lars P. Feld & Claus Larsen, 2012. "Undeclared Work, Deterrence and Social Norms," Springer Books, Springer, edition 127, number 978-3-540-87401-0, July.
    2. International Finance Corporation & World Bank, "undated". "Doing Business Economy Profile 2012," World Bank Publications - Reports 26973, The World Bank Group.
    3. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    4. Colin C. Williams & Sara Nadin, 2012. "Tackling Undeclared Work in the European Union," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 20-25, July.
    5. International Finance Corporation & World Bank, "undated". "Doing Business Economy Profile 2012," World Bank Publications - Reports 26931, The World Bank Group.
    6. Colin C. Williams, 2006. "The Hidden Enterprise Culture," Books, Edward Elgar Publishing, number 3948.
    7. Friedrich Schneider (ed.), 2011. "Handbook on the Shadow Economy," Books, Edward Elgar Publishing, number 13432.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marko Crnogorac & Santiago Lago-Peñas, 2018. "Tax evasion in Former Yugoslavian countries," Working Papers. Collection A: Public economics, governance and decentralization 1811, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Josip Franic, 2019. "Undeclared Economy in Croatia during the 2004–2017 Period: Quarterly Estimates Using the MIMIC Method," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 21(1), pages 5-46, June.
    3. Franić Josip & Kojouharov Anton, 2019. "Informal payments by patients in Croatia: benign custom or detrimental residue from socialism?," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 5(2), pages 49-63, December.
    4. Colin C Williams & Junhong Yang, 2017. "Tackling falsely-declared salaries in Bulgaria: evidence from a 2015 survey," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 333-351, September.
    5. Colin C. Williams & Slavko Bezeredi, 2018. "Evaluating Policy Approaches Towards Undeclared Work: Some Lessons from FYR of Macedonia," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 16(2), pages 171-187.
    6. Bruno Skrinjaric & Vedran Recher & Jelena Budak, 2017. "Consumption in the Dark: Estimating Unrecorded Expenditures of Households in Croatia," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 19(2), pages 135-167, December.
    7. Paraskevi Koufopoulou & Colin C. Williams & Athanassios Vozikis & Kyriakos Souliotis, 2019. "Shadow Economy: Definitions, terms & theoretical considerations," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 9(5), pages 1-3.

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    More about this item

    Keywords

    Informal Economy; Undeclared Work; Shadow Economy; Underground economy; Croatia; Europe;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • K2 - Law and Economics - - Regulation and Business Law

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