Who Participates in Undeclared Work in the European Union? Toward a Reinforced Marginalization Perspective

Representations of who participates in undeclared work have adopted either a marginalization thesis which holds that undeclared work is conducted disproportionately by the unemployed or a reinforcement thesis which holds that it is conducted disproportionately by the employed. Reporting a 2013 survey of participation in undeclared work involving 27,563 face-to-face interviews conducted in 28 European Union (EU) member states, the finding is that although the unemployed are more likely to engage in undeclared work, they undertake only 20 per cent of all undeclared work and receive significantly lower earnings from the undeclared economy than those in declared jobs, meaning that their participation reinforces their marginalized position relative to the employed. Moreover, those in declared employment who benefit least from the declared labor market (e.g., younger people, those with financial difficulties) are again more likely to engage in undeclared work, but have lower financial gains from their undeclared work than those who benefit more from declared employment. The outcome is a tentative call for a new reinforced marginalization theoretical perspective which holds that although marginal groups are more likely to engage in undeclared work, they gain less from their undeclared work, meaning that the undeclared sphere reinforces the marginalization produced by the declared economy.