Evaluating competing perspectives towards undeclared work: some lessons from Bulgaria

Williams, Colin C.; Yang, Jiansong

doi:10.1080/25739638.2018.1511112

Cited by 10 publications

(5 citation statements)

References 63 publications

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“…Specifically, five out of seven supervised machine learning models exhibited remarkable classification accuracy (99.5% or more) on the training set. Alongside demonstrating that the existing causal factors jointly provide sufficient information to fully segregate wrongdoers, our findings also support a growing body of research on the dominance of personal norms, beliefs, and values over mere economic constraints in the modern-day reasoning of workers (e.g., Alm et al 2017 ; Franic 2020b ; Williams and Yang 2018 ). As shown, intrinsic willingness to pay taxes, exposure to information about concealed activities, and their perception about the pervasiveness of such activities in society are nowadays crucial for one’s decision whether to choose the same path.…”

Section: Discussionsupporting

confidence: 76%

What do we really know about the drivers of undeclared work? An evaluation of the current state of affairs using machine learning

Franić

2022

AI & Soc

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It is nowadays widely understood that undeclared work cannot be efficiently combated without a holistic view on the mechanisms underlying its existence. However, the question remains whether we possess all the pieces of the holistic puzzle . To fill the gap, in this paper, we test if the features so far known to affect the behaviour of taxpayers are sufficient to detect noncompliance with outstanding precision. This is done by training seven supervised machine learning models on the compilation of data from the 2019 Special Eurobarometer on undeclared work and relevant figures from other sources. The conducted analysis not only does attest to the completeness of our knowledge concerning the drivers of undeclared work but also paves the way for wide usage of artificial intelligence in monitoring and confronting this detrimental practice. The study, however, exposes the necessity of having at disposal considerably larger datasets compared to those currently available if successful real-world applications of machine learning are to be achieved in this field. Alongside the apparent theoretical contribution, this paper is thus also expected to be of particular importance for policymakers, whose efforts to tackle tax evasion will have to be expedited in the period after the COVID-19 pandemic.

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Section: Discussionsupporting

confidence: 76%

What do we really know about the drivers of undeclared work? An evaluation of the current state of affairs using machine learning

Franić

2022

AI & Soc

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“…Until now, the vast majority of studies have focused upon the supply-side examining employers and workers participation in undeclared work. These studies examine the types of work conducted (ILO, 2018; Williams, 2014), the demographic and socio-economic characteristics of informal workers and businesses (ILO, 2018; OECD, 2017; Williams and Bezeredi, 2019; Williams and Yang, 2018; World Bank, 2019), and their motives for participating in undeclared work (Maloney, 2004; Shahid et al , 2019; Williams, 2019; World Bank, 2019). Much less attention has been given to the demand-side.…”

Section: Explaining the Cash-in-hand Consumer Culturementioning

confidence: 99%

Explaining the cash-in-hand consumer culture in the European home repairs and renovations sector

Williams

Kosta

2020

JFMPC

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Purpose The purpose of this paper is to explain who purchases undeclared home repairs and renovations and their motives to tackle the cash-in-hand consumer culture. The conventional view has been that undeclared home repairs and renovations are sought by those consumers needing to save money and desiring a lower price. Here, this is evaluated critically. Design/methodology/approach To do so, evidence from a 2019 Eurobarometer survey involving 27,565 face-to-face interviews in 28 European countries is reported. Findings The finding is the need for a nuanced and variegated understanding of who purchases undeclared home repairs and renovations and why. Lower price is their sole rationale in just 25% of purchases, one of several rationales in 34% of cases and not a reason in the remaining 42% of purchases. Besides a lower price, consumers purchase undeclared not only unintentionally but also to circumvent the failings of formal sector provision in terms of its availability, speed and quality, as well as for social and redistributive rationales. Practical implications To reduce the cash-in-hand consumer culture, not only are incentives needed to persuade consumers to purchase declared along with awareness-raising campaigns about the benefits of purchasing declared services but initiatives are also needed to improve the availability, speed, reliability and quality of formal provision and to address undeclared purchases conducted for social and redistributive purposes. Originality/value This paper improves understanding of how governments can stop consumers asking “how much for cash” and reduce demand for undeclared home repair and renovation services.

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“…Most of the literature on the informal economy investigates the supply side, focusing on how many people work in the informal economy, who does so and/or the motives for working in the informal economy [7,20,[31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47]. Little research has investigated the demand side of the informal economy, especially on the motives for purchasing undeclared goods and services.…”

Section: Why Do Consumers Purchase From the Informal Economy?mentioning

confidence: 99%

Exploring the Demand-Side of the Informal Economy during the COVID-19 Restrictions: Lessons from Iași, Romania

et al. 2022

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Little attention has been paid to why consumers choose to purchase goods and services from the informal economy. Similarly, few studies have been conducted on consumer behaviour in relation to informal markets during the COVID-19 pandemic. The aim of the article is to evaluate, for the first time, whether the COVID-19 pandemic influenced consumer behaviour in relation to the informal economy. Qualitative evidence collected in Iași, Romania, is reported. The finding is that the most important motives for purchasing goods and services from the informal economy are related to social ends, such as supporting local businesses, maintaining relationships with others, and enhancing sustainable development. The novel finding of this research is that community exchange in the form of mutual aid and reciprocity is not activated only for friends, neighbours, kin or work colleagues but also for local businesses facing financial difficulties. The customers are displaying solidarity and empathy for their situation. As such, this article adds to previous findings indicating that the motivation of lower cost is not the universal rationale for purchasing from the informal economy as many consumers choose to make purchases from informal market driven by social rationales. The paper ends by discussing the policy implications of the findings.

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Evaluating competing perspectives towards undeclared work: some lessons from Bulgaria

Cited by 10 publications

References 63 publications

What do we really know about the drivers of undeclared work? An evaluation of the current state of affairs using machine learning

What do we really know about the drivers of undeclared work? An evaluation of the current state of affairs using machine learning

Explaining the cash-in-hand consumer culture in the European home repairs and renovations sector

Exploring the Demand-Side of the Informal Economy during the COVID-19 Restrictions: Lessons from Iași, Romania

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