engleski

Peer country comments paper - Croatia: the long and winding road to tackling undeclared work in Croatia

As opposed to formal employment contracts, undeclared informal activities are mostly legal productive activities carried out on a small scale, with low levels of organisation and often with labour relations based on casual employment and/or personal or family relationships. The different estimates of undeclared work when assessed as a share of total labour input and gross value added (GVA) are mostly related to the sectoral distribution of undeclared work and the varying productivity of sectors. A higher share of undeclared work in terms of GVA compared with total labour inputs suggests a concentration of undeclared work in sectors where labour productivity is higher. Undeclared work is more present when there is: a lower GDP per capita ; higher levels of corruption and lower quality governance ; lower expenditure on labour market interventions to help the most vulnerable groups ; lower social expenditure, and social transfer systems that are ineffective in reducing the level of inequality and severe material deprivation

Croatia ; undeclared work ; unofficial economy ; rule of law

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