Who participates in the undeclared economy in South-Eastern Europe? An evaluation of the marginalization thesis

To evaluate the “marginalization thesis” which posits that marginalized populations are more likely to engage in the undeclared economy, a 2013 Eurobarometer survey of six South-East European countries is analysed. Finding that some marginalized populations (e.g., those having difficulties paying household bills, the unemployed, younger people) are significantly more likely to participate in undeclared work, but others are not (e.g., poorer nations, women, those with fewer years in formal education, those living in rural areas), the outcome is a call for a more variegated and nuanced understanding of the marginalization thesis. The paper then discusses the theoretical and policy implications.