Preventative approaches towards undeclared work: a learning resource

On 17th November 2020, the Western Balkan Network tackling undeclared work held an online meeting to discuss preventative approaches towards undeclared work. The aim of this learning resource is to document for each preventative approach: (i) the challenges experienced in introducing them; (ii) the ways forward, and (iii) examples of good practice potentially transferable to other economies both from the EU and Western Balkans. To do so, section 2 introduces the four types of preventative policy measure, namely: supply-side incentives; demand-side incentives; education and awareness raising; and modernizing formal institutions. Section 3 provides a review of the challenges and tips for introducing supply-and demand-side incentives that transform undeclared work into declared work by making the conduct of declared work beneficial and easier for employers and workers, and target purchasers of undeclared goods and services with rewards for using declared goods and services. Section 4 then evaluates the implementation of education and awareness raising initiatives which change citizens, workers and employers’ norms, values and beliefs regarding the acceptability of undeclared work. Section 5 reviews the fourth and final type of preventative measure focused upon the modernization of formal institutions. Section 6 then discusses some good practice examples from Western Balkan economies and Section 7 draws conclusions and makes recommendations.