Size and Progression of the Shadow Economies of Turkey and Other OECD Countries from 2003 to 2013: Some New Facts

Year 2013, Volume: 2 Issue: 2, 83 - 116, 01.05.2013

Friedrich Schneider

Abstract

In this paper, the main focus is on the definition, measurement methods, and causal factors of the shadow economy in OECD countries. The greatest influence on the shadow economy is tax policies and state regulation. Furthermore, an appreciation of the overall burden of the state (taxes and regulations) and the general situation in the labor market, including levels of self-employment and unemployment, is crucial for an understanding of the dynamics of the shadow economy.

Keywords

Shadow economy, undeclared work, tax morale, tax pressure, state regulation

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