engleski

Undeclared economic activities of Croatian companies: findings from a representative survey of 521 companies

Undeclared economic activities of Croatian companies: findings from a representative survey of 521 companies Technical Report · September 2017 DOI: 10.13140/RG.2.2.14888.26883 Report number: GREY Working Paper no. 13 Predrag Bejakovic at Institut za Javne Financije 1stPredrag Bejakovic 20.47 · Institut za Javne Financije Colin C Williams at The University of Sheffield 2ndColin C Williams 62.24 · The University of Sheffield Abstract This report presents the findings of a survey on undeclared economic practices undertaken by Croatian companies. In order to obtain the rigorous evidence on undeclared work in Croatia, we previously investigated citizens’ experiences with undeclared work and the practice of envelope wages. With this representative survey of 521 companies, we focus on frequency of company engagement in the undeclared economy. Almost 50% of the interviewed companies assessed that the undeclared economy in Croatia is between 20% and 35%, which is in line with estimations of several research studies. Regarding the sectors where the undeclared economy is most prevalent in Croatia, more than one third of the respondents mentioned the construction sector, followed by tourism and other. The share of others, three mentioned sectors - hotels and catering, car repair and retail - was significantly lower. The depicted sectors and their ranking mostly corresponded with the findings of various surveys on the sector specific presence of the undeclared economy. Four out of ten survey respondents estimate that 20% to 50% of trade in their sector is undeclared, while more than one quarter (21.8%) believe that this percentage is higher than 50%. Only one sixth of survey respondents state that the percentage of trade in their sector conducted through the undeclared economy is less than 10%. 40% of respondents believe that 20% to 50% of employees in their sector are working without a contract, while 11.8% estimate that this percentage is greater than 50%. One quarter of the company representatives (26.12%) think that less than 10% of employees in their sector do not have contracts.

informal economy ; underground economy ; Croatia ; firms,

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