Naslov
Tackling the illegitimate under-reporting of salaries in Southeast Europe: some lessons from a 2015 survey in Bulgaria, Croatia and FYR Macedonia

Autori
Williams, Colin C. ; Franić, Josip

Izvornik
Eastern journal of european studies (2068-651X) 8 (2017), 1; 5-28

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
envelope wages ; tax morale ; informal economy ; Southeast Europe

Sažetak
To tackle the illegitimate employer practice of under-reporting salaries, the conventional deterrence policy approach seeks to increase the penalties and risk of detection. Recently, however, calls have been made for a new more indirect approach that enhances tax morale so as to nurture a culture of self-regulation. The aim of this paper is to evaluate these two policy approaches. Reporting evidence from 6, 019 face- to-face interviews conducted in Bulgaria, Croatia and FYR Macedonia in 2015, logit regression analysis reveals no association between salary under-reporting and the perceived level of penalties and risk of detection, but a strong association between salary under-reporting and the level of tax morale. The paper concludes by discussing the implications of the findings for theory and policy.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA