IDEAS home Printed from https://ideas.repec.org/a/zna/indecs/v17y2019i3-ap468-475.html
   My bibliography  Save this article

Possible Smart City Solutions in the Fight against Black Economy

Author

Listed:
  • Piroska Dobos

    (Obuda University, Doctoral School on Safety and Security Sciences, Budapest, Hungary)

  • Katalin Takacs-Gyorgy

    (Obuda University, Faculty of Business and Management, Budapest, Hungary)

Abstract

According to international statistics, Hungary has a high ratio of black economy. On December 31th of 2017, the number of registered corporations reached 1.7 million, of which 395 910 were registered in Budapest [1]. There is a clear need for such measures and developments that are aimed to track corporations at the e-government level, and such infocommunicational equipment and services that essentially promote the arrangement of data. Black employment is one of the most easily identified territories of the hidden economy. Employers must register the working hours, and they are also responsible for the factual, real and entire content of the registry. A number of entry systems are available which - besides ensuring electronic protection - are also suitable for registering the working hours. These systems, however, have both advantages and disadvantages, and different types of abuses have become widespread. The purpose of the study is to provide an overview of these systems based on their ability to reduce black employment and the limitations of their applicability from the point of data protection, with particular attention to the introduction of the General Data Protection Regulation of the European Union from 25 May 2018 in all member states. Employers manage data through their legitimate interest on web and telephone usage, control of emails, or even GPS-based location information. Likewise, legitimate interest is also the basis of the introduction of workplace monitoring systems. To reduce the size of the black economy, the use of an electronic system would be the most suitable tool - which would transfer the information extracted from the system to an immediate tax authority - based on the patterns of online cash registers or online billing programs. This, on the one hand, could provide the basis for the necessary identification and work documentation, but on the other hand, it raises the risk of excessive data handling, which is illegal.

Suggested Citation

  • Piroska Dobos & Katalin Takacs-Gyorgy, 2019. "Possible Smart City Solutions in the Fight against Black Economy," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(3-A), pages 468-475.
    • Handle: RePEc:zna:indecs:v:17:y:2019:i:3-a:p:468-475
    as

    Download full text from publisher

    File URL: http://indecs.eu/2019/indecs2019-pp468-475.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Friedrich Schneider & Andreas Buehn & Claudio Montenegro, 2010. "New Estimates for the Shadow Economies all over the World," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 443-461.
    2. Friedrich Schneider & Andreas Buehn & Claudio E. Montenegro, 2011. "Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 1, Edward Elgar Publishing.
    3. Takács, István & Csapodi, Pál & György-Takács, Katalin, 2011. "Corruption as a Deviant Social Attitude," Public Finance Quarterly, Corvinus University of Budapest, vol. 56(1), pages 27-43.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petra Koudelkova & Wadim Strielkowski & Denisa Hejlova, 2015. "Corruption and System Change in the Czech Republic: Firm-level Evidence," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 25-46, March.
    2. Bucciol, Alessandro & Cavalli, Laura & Fedotenkov, Igor & Pertile, Paolo & Polin, Veronica & Sartor, Nicola & Sommacal, Alessandro, 2017. "A large scale OLG model for the analysis of the redistributive effects of policy reforms," European Journal of Political Economy, Elsevier, vol. 48(C), pages 104-127.
    3. Piotr Dybka & Bartosz Olesiński & Marek Rozkrut & Andrzej Torój, 2023. "Measuring the model uncertainty of shadow economy estimates," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 1069-1106, August.
    4. Rahman, Aminur, 2014. "Investment climate reforms and job creation in developing countries : what do we know and what should we do ?," Policy Research Working Paper Series 7025, The World Bank.
    5. Matthieu BOUSSICHAS & Vincent NOSSEK, 2014. "État des lieux statistique des Objectifs du Développement Durable (ODD) dans les PMA et les autres pays vulnérables," Working Papers P114, FERDI.
    6. Eun Young Oh & Shuonan Zhang, 2022. "Informal economy and central bank digital currency," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1520-1539, October.
    7. Martin Halla, 2011. "The Link between the Intrinsic Motivation to Comply and Compliance Behaviour: A Critical Appraisal of Existing Evidence," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 11, Edward Elgar Publishing.
    8. Ahmed Gulzar & Novaira Junaid & Adnan Haider, 2010. "What is Hidden in the Hidden Economy of Pakistan? Size, Causes, Issues, and Implications," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 665-704.
    9. Adnan Haider & Musleh ud Din & Ejaz Ghani, 2012. "Monetary Policy, Informality and Business Cycle Fluctuations in a Developing Economy Vulnerable to External Shocks," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(4), pages 609-681.
    10. El-Mallakh, Nelly & Maurel, Mathilde & Speciale, Biagio, 2018. "Arab spring protests and women's labor market outcomes: Evidence from the Egyptian revolution," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 656-682.
    11. Karine Torosyan & Randall K. Filer, 2014. "Tax reform in Georgia and the size of the shadow economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 179-210, January.
    12. Ceyhun Elgin & Friedrich Schneider, 2016. "Shadow Economies in OECD Countries: DGE vs. MIMIC Approaches," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 51-75.
    13. Massomeh Hajilee & Farhang Niroomand, 2018. "The impact of interest rate volatility on financial market inclusion: evidence from emerging markets," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(2), pages 352-368, April.
    14. Ravi KANBUR & Lucas RONCONI, 2018. "Enforcement matters: The effective regulation of labour," International Labour Review, International Labour Organization, vol. 157(3), pages 331-356, September.
    15. Brindusa Mihaela TUDOSE & Raluca Irina CLIPA, 2016. "An Analysis Of The Shadow Economy In Eu Countries," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8(2), pages 303-312, August.
    16. Jozef Pacolet & Joris Vanormelingen, 2015. "Illicit Financial Flows: concepts and first macro estimates for Belgium and its 18 preferred partner countries," BeFinD Working Papers 0110, University of Namur, Department of Economics.
    17. Adriana AnaMaria DAVIDESCU, 2014. "Evaluating The Relationship Between Official Economy And Shadow Economy In Romania. A Structural Vector Autoregressive Approach," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 3(2), pages 57-65, DECEMBER.
    18. Ceyhun Elgin & Burak Uras, 2013. "Is informality a barrier to financial development?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(3), pages 309-331, August.
    19. Lehmann, Hartmut & Muravyev, Alexander, 2012. "Labor Market Institutions and Informality in Transition and Latin American Countries," IZA Discussion Papers 7035, Institute of Labor Economics (IZA).
    20. Prasun Bhattacharjee & Biswajit Mandal & Ravi Radhakrishnan, 2022. "Informal input sector and its impact on output market competitiveness," Indian Economic Review, Springer, vol. 57(2), pages 553-564, December.

    More about this item

    Keywords

    hidden economy; black employment; access control systems; security solutions; e-government;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zna:indecs:v:17:y:2019:i:3-a:p:468-475. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Josip Stepanic (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.