Confronting the Shadow Economy
Show Less

Confronting the Shadow Economy

Evaluating Tax Compliance and Behaviour Policies

Colin C. Williams

Beginning with a review of the extent of undeclared work, the author discusses the discrepancies between regions and the potential impacts of the economic crisis, comparing the nature of the potential solutions available with those actually adopted. The way forward, the book concludes, is to move away from increasing the costs of engaging in hidden work using repressive measures, and concentrate more on developing initiatives that enhance the benefits of engaging in declared work and increase the likelihood of compliance by engendering a commitment to tax morality.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: Supply-side incentives for individuals

Colin C. Williams


The recognition that the objective is to shift shadow work into the declared economy has moved attention away from purely detecting and punishing non-compliance. Rather than solely increase the costs of operating in the shadow economy, measures are also required to make it easier and more beneficial to operate in the declared economy. Chapter 7 reviewed and evaluated measures to make it easier or more beneficial for businesses to work on a declared basis. The aim of this chapter is to evaluate the policy measures used to make it easier or more beneficial for another group of the population to work on a declared basis, namely individual taxpayers. These measures seek to simplify compliance, introduce new categories of declared work, provide direct tax and social security incentives, smooth the transition to self-employment, provide society-wide and individual-level amnesties and require the attendance of the unemployed. Here, each of these measures is reviewed and evaluated in turn as tools for shifting work in the shadow economy into the declared economy.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.