What has been the impact of the recession on the black economy in Spain?

7/30/2019 What has been the impact of the recession on the black economy in Spain?

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June 2012 Juan Ibaez Martin

What has been the impact of therecession on the black economy in

Spain?

INTRODUCTION

According to Schneider, (2010a) the global financial crisis that began in 2008 has

coincided with a sharp increase of the shadow economy in OECD countries including

Spain. Schneider, (2010b) claims that during a booming economy people have more

opportunities to join the ranks of the formal economy whereas during a recession

people tend to search for an extra source of income in the shadow economy activities.

This increase has also been aided by the fact that particular intensive labour sectors of

the Spanish economy like agriculture, building and tourism industries mainly employs

unskilled workers making it is easier to ignore administrative rules. (Reinery 2003:

p13).

This topic is of relevant importance in relation to issues of public finances like tax

evasion and social security contributions. On the other hand, something that many

authors fail to point out is that workers that engage in the black economy can also bevictims of a failure on the part of governments to protect the welfare of its citizens

who will likely be more exposed to exploitation and dangerous and unhealthy

conditions at work. The issue of the black economy can be better understood by

analysing its causes, the players involved and who really benefits from it.

It is important to remember that this is a complex subject not just because of the

difficulties gathering reliable or accurate information but also because of the

complexity trying to understand it and the lack of agreement with any given definition

or methodology. Consequently, the results of any research will considerably differ

depending on what definition and what methodology is used.

The aim of this essay is to provide some evidence on the size of the black economy in

Spain and its present state in the midst of a global financial crisis. However, the

results should be taken with some reservation as there is not a single way in which to

ascertain the exact nature and scope of these hidden activities.

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DEFINING THE BLACK ECONOMY

According to the economist, Vito Tanzi (1980), who lead an original study in this area,

"Underground economy is gross national product that because of unreporting and/or

underreporting is not measured by official statistics" (Tanzi, 1980: p 428) That is, all

currently unregistered economic activities that contribute to the officially calculated

Gross National Product (Schneider, 2010 p 444).

Therefore, the total economic activity of a country equates to the sum of its formal

and its informal economies. Smith (1986), divides the shadow or informal economy

into two main areas. one is not measured by convention, (i.e. Voluntary work), the

other isnt measured because its activities are hidden, (i.e. crime, tax evasion, etc),

that is, because they completely operate outside the law.

Looking at figure 1, Smith defines the black economy as the legal or illegal production ofgoods and services that should in principle be measured but are hidden from the official

accounts.

Figure 1

Source: Smith (1986) p.9

That is the definition of the black economy as described by Smith (1986) and later

expanded by Fagan (1997) but for the purposes of this essay we will adopt a more narrow

definition of the black economy as including the legal production of goods and services

which are concealed from the competent authorities to which it should be made known by

law but it isnt in order to avoid paying taxes, social security contributions, etc.

Figure 2 below illustrates this definition but includes the illegal activities as part of the

black economy.

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Source: Smith (1986) p. 10

CAUSES AND CONSEQUENCES

In line with our narrow definition of the black economy (not taking into account the

production of illegal goods and services like prostitution, drug trafficking, etc) wecould mention some of the main causes that drive individuals and private companies

to conceal their economic activities.

According to Fernandez Diaz (2010: p 88), the following are some of the main causes

for the operation of the black economy:

a. The increase of direct and indirect taxes has an impact on the development of

the black economy amongst private companies.

b. On the part of individuals without contracts, it is the concealment of income

and avoidance of tax payments.c. An excessive intensity of regulations, often equating with the number of laws

and regulations (like labour regulations, trade barriers or restrictions of

employment for immigrants), might encourage companies to operate in the

shadow economy.

d. What is called the tax morality or the attitudes of people towards their

government. This means that some citizens are more willing to engage in the

black economy. A diminishing of morality in those terms would translate into

an increase in the black economy.

Moreover, in reference to Spain, Pedersen (1998: p 134) states that: ...legislation has

made it more attractive for firms to operate in the black economy- the authoritiesrelaxed control and the consequences of violating the law were moderate. In other

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words, it is the ambivalence of official attitudes towards the black economy that

contributes to its development. De La Rica & Lemieux (1994 cited in Pedersen, 1998:

p 134) quotes the Spanish Labour Minister in 1984 as saying it was necessary to

accept the black economy because it reflected the inadequacies of the laws. He was

also quoted as claiming that the black economy was a minor evil.

Furthermore, the International Labour Organization established that in order to reduce

the black economy, nations should introduce awareness campaigns, prevention

schemes and sanctions, the latter which should only be employed as a last resort for

fear that if they are disproportionate it could make wage earners lose their jobs and

companies become insolvent, (Jurado, 2010: p 182)

According to Schneider (2010), the increase of the shadow economy can have

negative consequences on state revenues and affects the quality and quantity of

services provided by the public sector. This in turn can lead to an increase in taxes in

the formal economy. Because the provision and the quality of the public sector

services influences individuals decisions to work in the shadow economy, thedeterioration of those public services combined with further taxes makes it more

appealing for further companies and individuals to join the shadow economy

(Schneider, 2010: p 446).

The consequences of the black economy are not only confined to the evasion of taxes

and its impact on the revenues of national states but it can also produce particular

detrimental consequences on the individuals engaging in those activities.

Amongst other things, not being able to contribute enough towards a pension or

unemployment benefits are some of the most commonly acknowledged. However,

there are other important issues to consider like the exploitation of workers, the lack

of secure jobs in the black economy and health and safety issues not covered by the

protection of employment tribunals.

MAIN METHODS FOR MEASURING THE BLACK

ECONOMY

There are various methods in order to measure the size of the black economy. Those

can be divided into two main groups, direct (interviews and surveys) and indirect

(through the analysis of variables).

The direct methods like surveys can be costly and the interviewees can hide

fraudulent behaviours. Those difficulties generate doubts over the credibility and

reliability of those methods.

For those reasons the main method of choice for most researchers is the use of

indirect methods which take into account the analysis of discrepancies between what

it could be expected in a particular economy and the observed reality in regards to

expenditure, employment and/or the use of money (Anghel & Vazquez, 2010: p20).

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The main indirect methods used are as follows:

a. National accounts discrepancies. These are based according to Smith (1986),

on the discrepancies in the results obtained between the three ways in which

the gross domestic product can be calculated.

The estimates for the GDP of a country can be calculated according to theexpenditure method (which takes into account all expenditures on goods and

services by companies, government and individuals); according to the income

method (which adds up the incomes earned from the production of goods and

services); and according to the output method (which takes into account the

total output of goods and services on the economy).

Although in practice they are just estimates and are unlikely to be exact, in

theory the three measures of GDP should be exactly equal, (Smith, 1986: p

109). In some cases, companies may wish to conceal their true output because

a proportion of their business has been conducted off the books in order to

evade VAT. In the same line some companies might try to conceal their trueturn over for the same reasons, this way any estimates of the GDP based on

output or income would not detect incomes that were concealed to avoid tax.

Research carried out by MacAfee (1980 cited in Smith, 1986: p 110) claims

that GDP based on output and income employs wholly independent methods

of estimation from GDP based on expenditure. He argues that estimates of

expenditure are unbiased since there is little reason for respondents to disguise

or exaggerate expenditure. In turn this means that there is likely to be some

concealment on the GDP based on income or output and not on GDP based on

expenditure, concluding that The discrepancy between different estimates of

GDP might then provide an indication of the extent of the black economy

(Smith, 1986: p 110).

b. Discrepancies between official working population and real figures . This

type of indirect method is based on the analysis of the active population.

Assuming that the active population is constant an increase on unemployment

rates could be attributed to an increase in the black economy. However this

method fails to take into account those individuals who hold jobs in both the

formal and informal economies.

c. The monetary approach. This approach is the most popular and is divided

into various methods based on transactions and the currency demand amongst

others.

The transactions method was developed by Feige (1979 cited by Feige 1989: p

46) and aims at estimating the amount of unobserved monetary transactions

and unrecorded income. As it is believed that there should be an equality

between the total volume of payments and the total volume of transactions

(Feige, 1989: p 46) the difference between the two would give us an indication

to the extent of the unrecorded transactions.

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On the other hand, according to Feige, (1989), the currency demand method or

cash-deposit ratio approach is based on the idea that currency is assumed to

have an advantage over other methods of payment like cheques or credit cards

for the payment of goods and services. That is, if individuals wish to conceal

those payments from the authorities. Therefore an increase in the currency

stocks and payments in cash could be taken as an indication of hiddenactivities.

d. Electricity consumption method. According to Kaufmann and Kaliberda

(1996 as cited in Anghel & Vazquez 2010: p 28), state that the consumption of

electricity can be one of the best indicators for the estimation of the formal and

informal economic activities. The evidence shows that electricity consumption

and economic activity goes hand in hand. Therefore, an increase of

consumption would indicate an increase of the GDP whether official or not.

The mentioned authors would then estimate a total GDP from which they will

deduct the official total GDP resulting in an estimation of the shadow

economy.

The disadvantages of this method lies in the fact that not all activites of the

black economy requires considerable amounts of electricity as for instance

care work. This method would not be able to detect some sections of the

underground economy.

e. The MIMIC method. The method is based on the analysis of multiple

unobserved variables, considering multiple causes and indicators for the

measurement of the phenomenon. MIMIC stands for Multiple Indicators

Multiple Causes.

BACKGROUND TO THE BLACK ECONOMY IN

SPAIN

(Pendersen, 1998) gives an overview of the background to the Spanish development

of its black economy. According to the author, Spanish wages were regulated by the

State during the Franco dictatorship. From the beginning of the 70s, trade unions

began to make some advances in relation to wage increases and managed to secure an

average of 8.2% increase per year from 1973-79. The rise in wages also led to theincrease in unemployment from 5.8% in the mid 70s to 17.4% in 1980-85.

Initially, inflation was thought to be the main cause of high unemployment until

economists began to realise that the high unemployment levels in Spain were due to a

higher than expected black economy. The rapid growth of the black economy during

the transition to democracy after Francos death in 1975 could have been due to the

large increases in direct and indirect wage costs in so short a time as an explanation

for the growth of the black economy, cf. Benton (1990, p.31) according to Pendersen,

(1998: p 133).

Unemployment figures were overestimated and the Spanish Labour Ministry initiated

an extensive survey to obtain more information over the extent of the black economy.

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Ahn & De la Rica in 1997 (according to Pendersen, 1998) carried out the research

into the survey and published their results. The survey interviewed 39,494 people

from the ages of 16 to 65 and gave an estimate of 10.6% of the Spanish population in

that particular age bracket as engaging in the black economy.

The research carried out by Ahn & De la Rica (1997) left us with some particularinsights. First, in Spain, workers are not allowed to benefit from the welfare system

unless they obtain a social security card that can only be obtained once the individual

has acquired his first job in the formal economy. However, under the same system,

whilst workers cannot use the health service or receive sickness benefits without a

card, married couples and their children will be covered where at least one of the

spouses or parents has a card. There is therefore little incentive according to

Pendersen for members of a family to work in the formal economy if they are already

covered under the social security by virtue of their spouse or parents and hence, there

isnt either any incentive to pay extra contributions by joining the formal economy.

On the other hand, Pendersen cites De la Rica & Lemieux (1994) as claiming thatfirms benefit most from the black economy because employers share of social

contributions is 24% of the earnings whilst for wage earners is only 4.8% (Pendersen,

1998: p 134).

Finally Pendersen adds when comparing Spain to other northern European nations

that the black economy for the Spanish wage earner is a full time activity rather than a

part time one.

THE EUROPEAN CONTEXT

One of the authors that have contributed the most to the study ofthe shadow economy at an international level is Friedrich Schneider.He has estimated the size of the underground economy in 165countries for organizations including the World Bank, the IMF andpublic institutions of various countries (Anghel & Vazquez, 2010: p29).

According to Schneider, (2010a) the underground economy had

been in decline for most of OECD countries from 1997/98 until thebeginning of the financial crisis. The decline is illustrated in thetable below where the average shadow economy for 21 OECDcountries contributed an estimated 16.8% of their official economyin 1999/2000 declining to 13.3% by 2008.

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Schneider (2010a)

The decline of the shadow economy in all 21 OECD countries cameto an end from 2009 suggesting a close relationship with thebeginning of the global financial crisis that began the previous year.In 20091 it rose on average to 13.8% of the GDP or what is the samea 0.5% increase with respect to the previous year. A furtherincrease of 0.2% is expected in 20102 on average in all OECDcountries with a 0.3% increase in Spain raising the total OECDaverage to 14%.

Size of the underground economy in 21 OECD countries from 1989/90 to2010 (in % of official GDP) using the cash approach and the MIMIC method

1 Data for 2009 is provisional.2 Data for 2010 is provisional.

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Schneider (2010a: p8)

Schneider claims that the southern European countries haveshadow economies that range between 20 and 25 percent of theofficial GDP and continue to be among the frontrunners of OECD

nations.

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1997/98

1999/00

2001/02

2003

2004

2005

2006

2007

2008

2009

2010

Australia 14.00 14.30 14.10 13.70

13.20

12.60

11.40

11.70

10.60

10.90

11.10

Belgium 22.50 22.20 22.00 21.4

0

20.7

0

20.1

0

19.2

0

18.3

0

17.5

0

17.8

0

17.9

0Canada 16.20 16.00 15.80 15.30

15.10

14.30

13.20

12.60

12.00

12.60

12.70

Denmark 18.30 18.00 17.90 17.40

17.10

16.50

15.40

14.80

13.90

14.30

14.40

Germany 14.90 16.00 16.30 17.10

16.10

15.40

15.00

14.70

14.20

14.60

14.70

Finland 18.90 18.10 18.00 17.60

17.20

16.60

15.30

14.50

13.80

14.20

14.30

France 14.90 15.20 15.00 14.70

14.30

13.80

12.40

11.80

11.10

11.60

11.70

Greece 29.00 28.70 28.50 28.2

0

28.1

0

27.6

0

26.2

0

25.1

0

24.3

0

25.0

0

25.2

0UK 13.00 12.70 12.50 12.2

012.3

012.0

011.1

010.6

010.1

010.9

011.1

0Ireland 16.20 15.90 15.70 15.4

015.2

014.8

013.4

012.7

012.2

013.1

013.2

0Italy 27.30 27.10 27.00 26.1

025.2

024.4

023.2

022.3

021.4

022.0

022.2

0Japan 11.10 11.20 11.10 11.0

010.7

010.3

09.40 9.00 8.80 9.50 9.70

Netherlands

13.50 13.10 13.00 12.70

12.50

12.00

10.90

10.10

9.60 10.20

10.30

NewZealand 11.90 12.80 12.60 12.30 12.20 11.70 10.40 9.80 9.40 9.90 9.90

Norway 19.60 19.10 19.00 18.60

18.20

17.60

16.10

15.40

14.70

15.30

15.40

Austria 9.00 9.80 10.60 10.80

11.00

10.30

9.70 9.40 8.10 8.47 8.67

Portugal 23.10 22.70 22.50 22.20

21.70

21.20

20.10

19.20

18.70

19.50

19.70

Sweden 19.90 19.20 19.10 18.60

18.10

17.50

16.20

15.60

14.90

15.40

15.60

Switzerland

8.10 8.60 9.40 9.50 9.40 9.00 8.50 8.20 7.90 8.30 8.34

Spain 23.10 22.70 22.50 22.20

21.90

21.30

20.20

19.30

18.70

19.50

19.80

USA 8.90 8.70 8.70 8.50 8.40 8.20 7.50 7.20 7.00 7.60 7.80Av. 21OECD

16.80 16.80 16.70 16.50

16.10

15.60

14.50

13.90

13.30

13.80

14.00


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There are studies regarding illegal immigration in southern Europe and its closerelationship with the underground economy (Reyneiri, 2003). Whilst immigration is

not the subject matter of this study, some patterns can be observed from the research

carried out in that area.

Raynieri observed some important similarities amongst southern European countries,

(namely Portugal, Italy, Greece and Spain). He argues that in these countries the black

economy has long been firmly established and that people who lack the necessary

work permits find a large underground economy that offers them the means of

subsistence that would not otherwise be readily available in the formal economy.

(Reynieri, 2003: p13-14).

In Spain, Italy, Greece and Portugal, undocumented immigrants are engaging in

activities that local undeclared wage earners used to carry out. This is made easier to

disguise due to the nature of low skill services that form an important percentage of

the economy of those nations.

Reyneri (2003: p 8) states that in the south European labour markets most immigrants

work in unskilled jobs like housekeeping, agriculture, construction and personal

services amongst others. A pattern emerges when we compare those findings with the

leading sectors of the Spanish economy that are more susceptible to engage in the

black economy.

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THE GLOBAL FINANCIAL CRISIS AND THE

SPANISH BLACK ECONOMY

As already mentioned, the years 2009 and 2010 show an increase of the shadoweconomy in Spain according to Schneider (2010a).

In the graphic below we can observe how the shadow economy increases during 1994

and 1995, reaching 22.4% of the GDP, coinciding with an economic downturn (1993-

94) and an increase in unemployment rates (Anghel & Vazquez, 2010: p 32)

Schneider 2010a

From 1997 there was an economic boom combined with increases in employment

rates and nearly a 4% annual increase of the Spanish economy. However, with theadvent of the global financial crisis in 2008, a pattern emerges as the shadow

economy begins to increase once again.

The period starting from 2008 shows the beginning of an upward trend of the shadow

economy coinciding with unemployment levels similar to those in the 1994-95. The

black economy is now provisionally estimated at 19.80% of the official GDP

according to Schneider.

Anghel & Vazquez, (2010) concludes that the reason for the substantial increase on

the shadow economy is the fact that unemployment rates were significantly high

during the 90s, that the labour market is too inflexible and an excessive bureaucracy

amongst other factors. He also claims that the construction sector has had a substantial

impact on the increase of the shadow economy.

Moyano Jurado, (2010: pp 178-81), suggests the following sectors of the Spanish

economy as contributing the most to the black economy:

a. Construction: Until 2007 its proliferation meant the creation of companies

without sufficient experience acting as a magnet for foreign workers with no

professional qualifications as they were not required.

b. Hospitality: The lack of contracts in the industry, in particular those jobs thatare carried out during weekends, bank holidays or high season periods only.

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c. Agriculture: Due to their temporary nature and its great geographical mobility

many temporary work agencies operating outside the legal framework have

flourished in order to supply with the needed labour.

d. Housekeeping: Has provided employment in the black economy due to the

difficulty of access for inspectors to private properties.

e. Social Services: In particular looking after the elderly in care homes whereinstead of being contracted as carers, wage earners are contracted as cleaners

to avoid training and higher wages.

From that point of view, the particular composition of the labour sectors of the

Spanish economy can be attributed as one of the main factors for the substantial

development of the black economy.

The table below gives an illustration on the relevance to the Spanish economy of

sectors like construction, tourism (Hotels and restaurants) and others that are

particularly associated with the black economy. Coincidentally the construction and

tourism sectors have been mostly affected by the economic crisis, which in theoryshould have contracted their share of the black economy. However we do not have up

to date information for 2009.

GDP(millionsof euros,

2008)

Share ofshadow

economy

Shadoweconomy

(millions ofeuros, 2008)

Agriculture, huntingand forestry

26,198 12% 3,144

Fishing 1,835 10% 183

Mining and quarrying 2,631 0% 0

Manufacturing 158,745 18% 28,574

Electricity, gas andwater supply

23,628 0% 0

Construction 124,173 32% 39,735

Wholesale retailtrade, repair ofmotor vehicles,personal and

household goods

115,977 20% 23,195

Hotels andRestaurants

78,841 21% 16,557

Transport, storageand communication

72,440 16% 11,590

Financialintermediation

58,391 0% 0

Real estate, rentingand businessactivities

191,616 10% 19,162

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Public administrationand defence,compulsory socialsecurity

67,310 0% 0

Education 52,651 0% 0

Health and socialwork

64,385 12% 7,726

Other community,social and personalservice activities

41,031 10% 4,103

Private householdswith employedpersons

8,652 14% 1,211

Extra-territorialbodies organizationsand bodies

0 6% 0

Total 1,088,502 155,181

Entertainment,massage,prostitution andother

48,369

Total shadoweconomy

19% 203,550

Schneider 2010c p17

According to Ciccarone, (2010) the effects of the current economic crisis are difficult

to ascertain as there have been few estimates on the black economy, which he callsthe undeclared work (UDW).

He argues that if the UDW shows signs of contracting during the recession it could be

due to the following factors:

a. Lower demand for goods and services in the formal economy affecting the

informal economy likewise.

b. Traditional UDW sectors like construction, hospitality, etc., being mostly

affected by the crisis will in turn produce a decrease of the black economy in

those sectors.

c. New arrangements for the regularization of immigrant workers engaging in the

black economy might decrease the number of UDW.

Finally, Gonzalez (2010) argues that the black economy has decreased in so far as

UDW is concerned. She points out that Schneider methods of calculation are not

suitable to calculate UDW but only the wider spectrum of the informal economy.

According to her, Schneider uses a different methodology because he intends to study

the scope of the underground economy which includes both legal and illegal

activities. The use of the monetary and MIMIC methods are taken as representative of

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the UDW. According to her argument, the estimates given by Schneider based on his

methodology are unrealistic and disproportionately high.

The measurament of the undeclared work is based on discrepancies between official

employment figures and those provided by the Labour Force Survey. Or what is the

same, comparing sources for the supply (LFS and census) whereas the demand side isrepresented by social security registrations. Then, the numbers of social security

registrations are deducted from the figures of active workers as listed in the LFS.

Although she doesnt offer a percentage of the size of the UDW with respect to GDP

she supplies some interesting results concluding that the number of undeclared

workers has decreased from 2008 to 2009 by 416,033, having affected the

construction sector the most and immigrants in particular with 230,333 workers losing

their jobs.

She concludes that the Spanish government has developed a plan to prevent labour

fraud (March 2010) in order to cut the deficit from 11.4% to 3% of GDP by 2013. Shestates that the plan focuses on clandestine workshops, agriculture, transport, the

fraudulent unemployment benefit claims, false sick leave and social security

contributions amongst others.

CONCLUSION

Elvira Gonzalez based her findings on the Labour Force Survey which presents a

number of disadvantages. Amongst others, the fact that the comparability of such

research is limited and the veracity of the findings are based as much as on the skillsof the interviewer as it is on the willingness of the interviewee to honestly report their

underground activities.

However, in regards to her claims that the black economy has contracted in Spain, in

theory if the construction market collapses as it virtually has in Spain it should also be

reflected in the informal economy with a significant decrease in undeclared work.

Given the importance of the construction sector in Spain this should be reflected in

the estimates but no information is available yet for 2009.

One possible inference from her claim that the black market has contracted whilst at

the same time the underground economy has increased (in agreement with Schneider)could be that there has been an important surge in crime related activities since the

beginning of the financial crisis, but this is another area of research that should be

explored.

Finally with regards to the government introducing new legislation also in line with

European Union recommendations, It seems more (in my opinion) the result of

political rhetoric rather than a real commitment to tackle the issue.

Although tackling the problem of undeclared work would suppose a reduction of the

fiscal and contribution costs of the black economy, it would make it more imperative

to develop policies for the social costs that higher unemployment and poverty wouldproduce.

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The human, social and economic costs of eradicating undeclared work can be

substantial and in particular during a financial crisis like the present one. But equally

important the black economy as an economic shock absorber can release the pressure

of the increasing social unrest being experienced throughout Spain.

BIBLIOGRAPHY

Anghel, B & Vazquez, P. (2010), Economia sumergida Comparativa Internacional y

Metodos de estimacin in Implicaciones de la Economia Sumergida en Espaa.

XXVI edition of El Libro Marron. Circulo de Empresarios. Madrid.

Ciccarone, G. (2010), Workshop on Undeclared Work in the times of economic

crisis European Employment Observatory (EEO), Brussels

Fagan, P.G. (1997), "The Black Economy in Ireland", Irish Banking Review,

Summer, 19-25.

Feige, E. (1989) The Underground Economies: Tax Evasion and Information

distortion Cambridge University Press. Cambridge

Fernandez Diaz, A. (2010) Corrupcion y Economia Sumergida: Una vision de

conjunto in Implicaciones de la Economia Sumergida en Espaa. XXVI edition of El

Libro Marron. Circulo de Empresarios. Madrid.

Gonzalez, E. (2010), Workshop on Undeclared Work in the times of economic

crisis European Employment Observatory (EEO), Brussels

Halicioglu, F. (1999), The Black Economy in Turkey: An Empirical Investigation,

The Review of Political Sciences of Ankara University, Vol.53, pp.175-191

Pendersen, S. (1998), The Shadow Economy in Western Europe The Rockwool

Foundation Research Unit, Copenhagen

Reyneri, E. (2003), Illegal Immigration and the Underground Economy NationalEurope Center Paper No. 66. Paper presented to conference entitled The Challenges

of Immigration and Integration in the EuropeanUnion and Australia, 18-20 February

2003, University of Sydney.

Schneider, F. (2010a), The influence of the economic crisis on the underground

economy in Germany and the other OECD-countries in 2010: a further (increase)

Schneider, F. (2010b), New Estimates for the Shadow Economies all over the

World International Economic Journal, 24: 4, 443-461

Schneider, F. (2010c), The shadow Economy in Europe A.T. Kearney

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Smith, S. (1986), Britain's Shadow Economy, Clarendon Press, Oxford.

Tanzi, V. (1980), "The Underground Economy in the United States: Estimates and

Implications", Banca Nazionale Del Iavaro Quarterly Review, 33, 427-453.

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