Williams, C.C. orcid.org/0000-0002-3610-1933 and Franic, J. (2017) Tackling the illegitimate under-reporting of salaries in Southeast Europe: some lessons from a 2015 survey in Bulgaria, Croatia and FYR Macedonia. Eastern Journal of European Studies, 8 (1). pp. 5-28. ISSN 2068-651X
Abstract
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 too 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.
Metadata
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Copyright, Publisher and Additional Information: | © 2017 The Authors. CES provides an unrestricted on-line access to all the issues published by EJES as defined by the Creative Commons Attribution CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). | ||||
Keywords: | envelope wages; tax morale; informal economy; Southeast Europe | ||||
Dates: |
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Institution: | The University of Sheffield | ||||
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) | ||||
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Depositing User: | Symplectic Sheffield | ||||
Date Deposited: | 24 May 2017 10:48 | ||||
Last Modified: | 04 Dec 2019 12:20 | ||||
Published Version: | http://ejes.uaic.ro/EJES2017_vol8_issue1.htm | ||||
Status: | Published | ||||
Publisher: | Alexandru Ioan Cuza University of Iasi | ||||
Refereed: | Yes |