| dc.description.abstract | Taxation, corruption, excessive regulations, and ineffective governance stand out as primary drivers behind the emergence of the "shadow economy" (also known as the "grey," "informal," or "unregistered" economy). The prevailing theoretical models suggest that these variables are closely interrelated and can lead to either a positive or negative balance. The positive balance is characterized by stable institutions, light regulatory burdens, a broad tax base, often high taxes and revenues, and a small size of the shadow economy. Conversely, the negative balance involves unstable institutions, excessive and burdensome regulation, diverse tax bases, low revenues, and a significant size of the shadow economy. The larger the tax wedge (the difference between the total labour cost and income after taxation), the larger the informal economy becomes. The aim of this study is to present the results of an empirical field research on employer and employee attitudes toward the shadow economy, along with a discussion of effective measures to limit the "grey sector." | us_US |
