Horodnic, I.A. and Williams, C.C. orcid.org/0000-0002-3610-1933 (2021) Cash wage payments in transition economies: consequences of envelope wages. IZA World of Labor. ISSN 2054-9571
Abstract
In transition economies, a significant number of companies reduce their tax and social contributions by paying their staff an official salary, described in a registered formal employment agreement, and an extra, undeclared “envelope wage,” via a verbal unwritten agreement. The consequences include a loss of government income and a lack of fair play for lawful companies. For employees, accepting under-reported wages reduces their access to credit and their social protections. Addressing this issue will help increase the quality of working conditions, strengthen trade unions, and reduce unfair competition.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 The Author(s). This is an author-produced version of a working paper published in IZA World of Labor. For re-use permissions, please contact the authors. |
Keywords: | envelope wages; informal employment; undeclared economy; tax evasion |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 24 Jan 2023 12:50 |
Last Modified: | 24 Jan 2023 20:54 |
Published Version: | http://dx.doi.org/10.15185/izawol.280.v2 |
Status: | Published |
Publisher: | Forschungsinstitut zur Zukunft der Arbeit GmbH |
Refereed: | Yes |
Identification Number: | 10.15185/izawol.280.v2 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:195599 |