Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148505
Authors: 
Horodnic, Ioana Alexandra
Year of Publication: 
2016
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2016 [Issue:] 280
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.
Subjects: 
envelope wages
informal employment
undeclared economy
tax evasion
JEL: 
J46
J48
O17
E26
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.