Unreported Employment and Envelope Wages in Mid-Transition: Comparing Developments and Causes in the Baltic Countries

Meriküll, Jaanika; Stæhr, Karsten

doi:10.1057/ces.2010.17

Cited by 70 publications

(92 citation statements)

References 23 publications

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“…Various studies have dealt with this "invisible" labor market (Meriküll & Staehr, 2010), underlining how difficult it is to supply precise data on this trend, especially if we consider that workers involved prefer to remain anonymous (Schneider F. & Enste D.H., 2000). As a result, the "shadow economy" is a very difficult argument to deal with, especially due the causes that go towards creating it.…”

Section: Moonlightersmentioning

confidence: 99%

From the Unusual to the Useful: Digital Platforms and Co-Working Spaces as Instruments for Human Resource Management in Emerging Economic and Organizational Environments

Pompa¹

2017

IJBM

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In this present economic situation, the use of freelance workers, whose role in organizations runs side by side with that of full time workers, is becoming increasingly more important. The joint presence of these two very different forms of human resource, represents an important challenge to Human Resource Management, which has to adequately exploit the qualities of those who work within the organization, irrespective of the type of contractual ties they may have. Managerial literature has come up with limited contributions on this topic and without finding effective solutions to the integrated management of such an assortment of human resources. In this paper we contribute to fill this literature gap by proposing a conceptual model concerning how using digital platforms and co-working spaces may facilitate the company's human resource management. This particular model outlines how these two instruments can assist the work of HR managers, especially with the conception and implementation of recruitment and motivational processes.

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Section: Moonlightersmentioning

confidence: 99%

From the Unusual to the Useful: Digital Platforms and Co-Working Spaces as Instruments for Human Resource Management in Emerging Economic and Organizational Environments

Pompa¹

2017

IJBM

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“…Until now, this illegitimate wage practice has been mostly studied in Eastern and Central European countries (Neef 2002;Sedlenieks 2003;Karpuskiene 2007;Williams 2007;Woolfson 2007;Ž abko & Rajevska 2007;Meriküll & Staehr 2010). In recent years, however, the prevalence of this illegitimate practice has also started to be studied in South-Eastern Europe (Psychogios & Williams 2010;Williams 2010aWilliams , 2010bWilliams, Fethi & Kedir 2011;.…”

Section: Illegitimate Wage Practices and Institutional Theorymentioning

confidence: 99%

Explaining the Prevalence of Illegitimate Wage Practices in Southern Europe: An Institutional Analysis

Williams

Horodnic

2015

South European Society and Politics

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“…Studies of this tendency for formal employers to under-report their formal employees' wages have been conducted in Estonia (Meriküll and Staehr 2010), Latvia (OECD 2003;Meriküll and Staehr 2010;Sedlenieks 2003;Žabko and Rajevska 2007), Lithuania (Karpuskiene 2007;Meriküll and Staehr 2010;Woolfson 2007), Romania (Neef 2002), Russia (Williams and Round 2007) and Ukraine (Round et al 2008;Williams 2007).…”

Section: Explaining the Under-reporting Of Employees' Wages By Employmentioning

confidence: 99%

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mentioning

confidence: 99%

“…There was little recognition that not all jobs paying an undeclared wage are entirely hidden from, or unregistered by, the state for tax, social security and/or labour law purposes. In recent years, however, an emergent literature has begun to discuss how formal employers sometimes under-report the wages that they pay to their formal employees by paying them two wages, a declared salary and an undeclared 'envelope' wage which is hidden from, or unregistered by, the state for tax and social security purposes (Karpuskiene 2007;Meriküll and Staehr 2010;Williams 2008Williams , 2009aWoolfson 2007;Žabko and Rajevska 2007). It is these jobs, where the wage packet paid to formal employees by formal employers is under-reported, that are the subject matter of this article.…”

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confidence: 99%

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Cross-National Variations in the Under-Reporting of Wages in South-East Europe: A Result of Over-Regulation or Under-Regulation?

Williams¹

2012

South East European Journal of Economics and Business

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Over the past decade or so, a small but growing literature has highlighted how formal employers sometimes under-report the wages that they pay to their formal employees by paying them two wages, a declared salary and an undeclared 'envelope' wage (Karpuskiene 2007;Meriküll and Staehr 2010;Neef 2002;Sedlenieks 2003;Williams 2007Williams , 2008Williams , 2009aWoolfson 2007;Žabko and Rajevska 2007). Beyond highlighting that employers do this in order to reduce the social contributions they pay, there has been no attempt to explain why this wage practice varies cross-nationally. This paper, therefore, seeks to do so by evaluating whether it is more common for employers to underreport employees' wages in some economic systems than others. To do this, two competing economic perspectives will be evaluated.From a neo-liberal viewpoint, it could be argued that the under-reporting of wages is a product of high taxes, over-regulation and state interference in the free market and that the remedy is therefore to pursue tax reductions, de-regulation and to minimize state interference in the market. Viewed through this neo-liberal lens, therefore, the under-reporting of wages would be more common in countries with higher taxes and levels of state intervention in work and welfare systems. From a structuralist viewpoint, meanwhile, it could be argued that the under-reporting of wages is a product of inadequate levels of labour market intervention and social protection and that the solution is therefore to pursue greater state intervention. Viewed through this structuralist lens, in consequence, the under-reporting of wages would be less prevalent in countries with higher levels of state intervention in work and welfare. The aim of this paper is to evaluate these competing economic Abstract:This paper seeks to explain the cross-national variations in the tendency of employers in South East Europe to under-report the wages of their employees by paying them two wages, an official declared salary and an additional undeclared envelope wage. Reporting the results of a 2007 Eurobarometer survey of this practice undertaken in five South East European countries, the finding is that the commonality of this illicit wage practice markedly varies cross-nationally, with 23 percent of formal employees in Romania but just 3 percent in Cyprus receiving an under-reported salary. Finding that the under-reporting of wages is more prevalent in neo-liberal economies with lower levels of state intervention and less common in more 'welfare capitalist' economies in which there is greater state intervention in work and welfare, the resultant conclusion is that the under-reporting of employees wages by employers is correlated with the under-rather than over-regulation of work and welfare.

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Unreported Employment and Envelope Wages in Mid-Transition: Comparing Developments and Causes in the Baltic Countries

Cited by 70 publications

References 23 publications

From the Unusual to the Useful: Digital Platforms and Co-Working Spaces as Instruments for Human Resource Management in Emerging Economic and Organizational Environments

From the Unusual to the Useful: Digital Platforms and Co-Working Spaces as Instruments for Human Resource Management in Emerging Economic and Organizational Environments

Explaining the Prevalence of Illegitimate Wage Practices in Southern Europe: An Institutional Analysis

Cross-National Variations in the Under-Reporting of Wages in South-East Europe: A Result of Over-Regulation or Under-Regulation?

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