Explaining Participation in the Informal Economy in Post-Socialist Societies: A Study of the Asymmetry between Formal and Informal Institutions in Croatia

References

• Allingham, M., and A. Sandmo. 1972. “Income Tax Evasion: A Theoretical Analysis.” Journal of Public Economics 1: 323–338.10.1016/0047-2727(72)90010-2
   Google Scholar
• Alm, J., and B. Torgler. 2006. “Culture Differences and Tax Morale in the United States and in Europe.” Journal of Economic Psychology 27: 224–246.10.1016/j.joep.2005.09.002
   Web of Science ®Google Scholar
• Andrews, D., A. Caldera Sanchez, and A. Johansson. 2011. “Towards a Better Understanding of the Informal Economy.” OECD Economics Department Working Paper no. 873, Paris: OECD.10.1787/5kgb1mf88x28-en
   Google Scholar
• Baric, M., and C. C. Williams. 2013. “Tackling the Undeclared Economy in Croatia.” South-Eastern Europe Journal of Economics 1: 7–36.
   Google Scholar
• Baumol, W. J., and A. Blinder. 2008. Macroeconomics: Principles and Policy. Cincinnati, OH: South-Western Publishing.
   Google Scholar
• Bejaković, P. 2009. “Tax Evasion, State Capacity and Trust in Transitional Countries: The Case of Croatia.” Društvena Istraživanja Zagreb 3–5: 787–805.
   Google Scholar
• Cannari, L., and G. D’Alessio. 2007. Le Opiniomi Degli Italiani Sull’Evasione Fiscale [The Opinion of Italians on Tax Evasion]. Rome: Temi di Discussione, Bank of Italy.
   Google Scholar
• Castells, M., and A. Portes. 1989. “World underneath: The Origins, Dynamics and Effects of the Informal Economy.” In The Informal Economy: Studies in Advanced and Less Developing Countries, edited by A. Portes, M. Castells and L. Benton, 1–19. Baltimore, MD: John Hopkins University Press.
   Google Scholar
• Chang, J. J., and C. C. Lai. 2004. “Collaborative Tax Evasion and Social Norms: Why Deterrence Does Not Work.” Oxford Economic Papers 56 (2): 344–368.10.1093/oep/gpf045
   Web of Science ®Google Scholar
• European Commission. 2007. Stepping up the Fight against Undeclared Work. Brussels: European Commission.
   Google Scholar
• Čučković, N. 2002. “Siva Ekonomija i Proces Privatizacije u Hrvatskoj, 1997–2001.” [“The Grey Economy and the Privatisation Process in Croatia, 1997–2001”]. Financijska Teorija I Praksa 26: 245–271.
   Google Scholar
• Dau, L. A., and A. Cuervo-Cazurra. 2014. “To Formalize or Not to Formalize: Entrepreneurship and pro-Market Institutions.” Journal of Business Venturing 29: 668–686.10.1016/j.jbusvent.2014.05.002
   Web of Science ®Google Scholar
• Daude, C., and A. Melguizo. 2010. Taxation and More Representation? On Fiscal Policy, Social Mobility and Democracy in Latin America. OECD Development Centre Working Paper 294, Paris: OECD.
   Google Scholar
• De Soto, H. 1989. The Other Path: The Economic Answer to Terrorism. London: Harper and Row.
   Google Scholar
• De Soto, H. 2001. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. London: Black Swan.
   Google Scholar
• Dekker, H., E. Oranje, P. Renooy, F. Rosing, and C. C. Williams. 2010. Joining up the Fight against Undeclared Work in Europe. Brussels: Commission of the European Communities, Employment, Social Affairs and Equal Opportunities DG.
   Google Scholar
• Denzau, A. T., and D. North. 1994. “Shared Mental Models: Ideologies and Institutions.” Kyklos 47: 3–31.10.1111/kykl.1994.47.issue-1
   Web of Science ®Google Scholar
• Dixit, A. K. 2007. Lawlessness and Economics: Alternative Modes of Governance. Princeton, NJ: Princeton University Press.
   Google Scholar
• Dzhekova, R., and C. C. Williams. 2014. “Tackling the Undeclared Economy in Bulgaria. A Baseline Assessment.” GREY Working Paper No. 1, Sheffield: Sheffield University Management School.
   Google Scholar
• Dzhekova, R., J. Franic, L. Mishkov, and C. C. Williams. 2014. “Tackling the Undeclared Economy in FYR Macedonia. A Baseline Assessment.” GREY Working Paper No. 3, Sheffield: Sheffield University Management School.
   Google Scholar
• Franic, J., and C. C. Williams. 2014. “The Undeclared Economy in Croatia. A Baseline Assessment.” GREY Working Paper No. 2, Sheffield: Sheffield University Management School.
   Google Scholar
• Galić Nagyszombaty, A. 2012. “Unofficial Economy in Croatia: Estimation Methods and Results.” Ekonomski Pregled 63: 734–762.
   Google Scholar
• Gallin, D. 2001. “Propositions on Trade Unions and Informal Employment in Times of Globalisation.” Antipode 33: 531–549.10.1111/anti.2001.33.issue-3
   Web of Science ®Google Scholar
• Gasparaeniene, L., J. Kartasova, and R. Remeikiene. 2014. “Evaluation of Shadow Economy Emergence and Development Factors in Service Sector: Greek Case.” Academic Journal of Interdisciplinary Studies 3: 139–145.
   Google Scholar
• Geertz, C. 1963. Old Societies and New States: The Quest for Modernity in Asia and Africa. Glencoe, IL: Free Press.
   Google Scholar
• Gërxhani, K. 2004. “The Informal Sector in Developed and Less Developed Countries: A Literature Survey.” Public Choice 120: 267–300.10.1023/B:PUCH.0000044287.88147.5e
   Web of Science ®Google Scholar
• Hartner, M., A. Poschalko, S. Rechberger, and E. Kirchler. 2010. “Taxpayers’ Compliance by Procedural and Interactional Fairness Perceptions and Social Identity.” Journal of Psychology and Economics 3: 12–31.
   Google Scholar
• Helmke, G., and S. Levitsky. 2004. “Informal Institutions and Comparative Politics: A Research Agenda.” Perspectives on Politics 2: 725–740.10.1017/S1537592704040472
   Google Scholar
• Hudson, J., C. C. Williams, M. Orviska, and S. Nadin. 2012. “Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey.” The South-East European Journal of Economics and Business 7: 99–110.
   Google Scholar
• ILO. 2013. “Women and Men in the Informal Economy: Statistical Picture.” Accessed 18 November 2014. http://laborsta.ilo.org/informal_economy_E.html
   Google Scholar
• ILO. 2014. “Transitioning from the Informal to the Formal Economy.” Report V (1), International Labour Conference, 103rd Session (2014), Geneva: ILO.
   Google Scholar
• Kastlunger, B., E. Lozza, E. Kirchler, and R. Schabmann. 2013. “Powerful Authorities and Trusting Citizens: The Slippery Slope Framework and Tax Compliance in Italy.” Journal of Economic Psychology 34: 36–45.10.1016/j.joep.2012.11.007
   Web of Science ®Google Scholar
• Klarić, V. 2011. “Estimating the Size of Non-Observed Economy in Croatia Using the MIMIC Approach.” Financial Theory and Practice 35: 59–90.
   Google Scholar
• Lago-Peñas, I., and S. Lago-Peñas. 2010. “The Determinants of Tax Morale in Comparative Perspective: Evidence from European Countries.” European Journal of Political Economy 26: 441–453.10.1016/j.ejpoleco.2010.06.003
   Web of Science ®Google Scholar
• Legge, K. 1995. Human Resource Management. Basingstoke: Macmillan.10.1007/978-1-349-24156-9
   Google Scholar
• Lewis, A. 1959. The Theory of Economic Growth. London: Allen and Unwin.
   Google Scholar
• Lovrinčević, Ž., D. Mikulić, and A. Galić Nagyszombaty. 2011. “Unofficial Economy in Croatia and the Impact of the Economic Recession on the Unofficial Economy.” In The Ninth International Conference: Challenges of Europe: Growth and Competitiveness – Reversing the Trends. Conference Proceedings, edited by Z. Reić and V. Šimić, 42–65. Split: Faculty of Economics in Split.
   Google Scholar
• Maloney, W. F. 2004. “Informality Revisited.” World Development 32: 1159–1178.10.1016/j.worlddev.2004.01.008
   Web of Science ®Google Scholar
• Martinez-Vazquez, J., and B. Torgler. 2009. “The Evolution of Tax Morale in Modern Spain.” Journal of Economic Issues 43: 1–28.10.2753/JEI0021-3624430101
   Web of Science ®Google Scholar
• Mathias, B. D., S. Lux, T. R. Crook, C. Autry, and R. Zaretzki. 2014. “Competing against the Unknown: The Impact of Enabling and Constraining Institutions on the Informal Economy.” Journal of Business Ethics 127 (2): 251–264. doi:10.1007/s10551-013-2030-6.
   Web of Science ®Google Scholar
• Meagher, K. 2010. Identity Economics: Social Networks and the Informal Economy in Nigeria. New York, NY: James Currey.
   Google Scholar
• Ministry of Labour and Pension System. 2014. 2014: Godina Borbe Protiv Rada na Crno [2014 – The Year of the Fight Against Undeclared Work]. Accessed 17 April 2014. http://www.mrms.hr/2014-godina-borbe-protiv-rada-na-crno/
   Google Scholar
• Molero, J. C., and F. Pujol. 2012. “Walking inside the Potential Tax Evader’s Mind: Tax Morale Does Matter.” Journal of Business Ethics 105: 151–162.10.1007/s10551-011-0955-1
   Web of Science ®Google Scholar
• Murphy, K. 2005. “Regulating More Effectively: The Relationship between Procedural Justice, Legitimacy, and Tax Non-Compliance.” Journal of Law and Society 32: 562–589.10.1111/jols.2005.32.issue-4
   Web of Science ®Google Scholar
• Murphy, K., and N. Harris. 2007. “Shaming, Shame and Recidivism: A Test of Re-Integrative Shaming Theory in the White-Collar Crime Context.” British Journal of Criminology 47: 900–917.10.1093/bjc/azm037
   Web of Science ®Google Scholar
• North, D. C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.10.1017/CBO9780511808678
   Google Scholar
• Nwabuzor, A. 2005. “Corruption and Development: New Initiatives in Economic Openness and Strengthened Rule of Law.” Journal of Business Ethics 59: 121–138.10.1007/s10551-005-3402-3
   Web of Science ®Google Scholar
• OECD. 2012. Reducing Opportunities for Tax Non-Compliance in the Underground Economy. Paris: OECD.
   Google Scholar
• Official Gazette. 2011. Prohibition and Prevention of Unregistered Activities Act. 61/11.
   Google Scholar
• Ott, K. 2002. “Neslužbeno Gospodarstvo u Republici Hrvatskoj.” [“Unofficial Economy in Croatia”]. Financijska Teorija I Praksa 26: 1–30.
   Google Scholar
• Polese, A. 2015. “Informality Crusades: Why Informal Practices Are Stigmatized, Fought and Allowed in Different Contexts according to an Apparently Unintelligible Logic.” Caucasus Social Science Review 2 (1): 1–26.
   Google Scholar
• Polese, A., and J. Morris. 2015. “My Name is Legion: The Resilience and Endurance of Informality beyond, or in Spite of, the State.” In Informality in Post-Socialism, edited by J. Morris and A. Polese, 39–53. London: Palgrave.
   Google Scholar
• Ponsaers, P., J. Shapland, and C. C. Williams. 2008. “Does the Informal Economy Link to Organised Crime?” International Journal of Social Economics 35: 644–650.10.1108/03068290810896262
   Google Scholar
• Remeikiene, R., L. Gasparaeniene, and J. Kartasova. 2014. “Country-Level Determinants of the Shadow Economy during 2005–2013: The Case of Greece.” Mediterranean Journal of Social Sciences 5: 454–460.
   Google Scholar
• Round, J., C. C. Williams, and P. Rodgers. 2008. “Corruption in the Post-Soviet Workplace: The Experiences of Recent Graduates in Contemporary Ukraine.” Work, Employment and Society 22: 149–166.10.1177/0950017007087421
   Web of Science ®Google Scholar
• Routh, S. 2011. “Building Informal Workers Agenda: Imagining ‘Informal Employment’ in Conceptual Resolution of ‘Informality’.” Global Labour Journal 2 (3): 208–227.
   Google Scholar
• Rubić, T. 2013. “Afternoon Moonlighting – It Was a Must. the Dynamics and Paradoxes of the Croatian Socialist and Post-Socialist Labor Market.” Narodna Umjetnost 50: 121–145.10.15176/0547-2504
   Google Scholar
• van Schendel, W., and I. Abraham, eds. 2005. Illicit Flows and Criminal Things: States, Borders, and the Other Side of Globalization. Bloomington: Indiana University Press.
   Google Scholar
• Schneider, F. 2013. “Size and Development of the Shadow Economy of 31 European and 5 Other OECD Countries from 2003 to 2013: A Further Decline.” Accessed 6 November 2014. http://www.econ.jku.at/members/Schneider/files/publications/2013/ShadEcEurope31_Jan2013.pdf
   Google Scholar
• Schneider, F., and C. C. Williams. 2013. The Shadow Economy. London: Institute of Economic Affairs.10.1017/CBO9781139542289
   Google Scholar
• Sekulić, D., and Ž. Šporer. 2010. “Gubimo li Povjerenje u Institucije?” [Are We Losing Confidence in Institutions?] In Korupcija I Povjerenje [Corruption and Trust], edited by J. Kregar, D. Sekulić and Ž. Šporer. Zagreb: Centar za demokraciju i pravo.
   Google Scholar
• Siqueira, A. C. O., J. Webb, and G. D. Bruton. 2014. “Informal Entrepreneurship and Industry Conditions.” Entrepreneurship Theory and Practice. doi:10.1111/etap.12115.
   Web of Science ®Google Scholar
• Slavnic, Z. 2010. “Political Economy of Informalization.” European Societies 12: 3–23.10.1080/14616690903042724
   Web of Science ®Google Scholar
• State Inspectorate. 2013a. Inspekcijski Nadzori Gospodarskih Inspektora iz Područja Prometa Roba i Usluga, Neregistriranih Djelatnosti, Ugostiteljstva i Turizma za Razdoblje 1. Siječnja - 30. Rujna 2013 [Inspections in the Fields of Trade of Goods and Services, Unregistered Activities, Catering and Tourism for the Period 1 January-30 September 2013]. Zagreb: State Inspectorate.
   Google Scholar
• State Inspectorate. 2013b. Izvješće o Radu Državnog Inspektorata u 2012. Godini [State Inspectorate. Annual Report 2012]. Zagreb: State Inspectorate.
   Google Scholar
• Šundalić, A. 1999. “Privatizacijski Novum – Obećavajuća ili Neizvjesna Sudbina Većine [“Privatisation Novelty – A Promising or Uncertain Fate of the Majority”]. In Privatizacija I Javnost [Privatisation and the Public], edited by D. Čengić and I. Rogić, 141–160. Zagreb: Institute of Social Sciences Ivo Pilar.
   Google Scholar
• Tax Administration. 2013a. Competition ‘It Doesn’t Count without a Receipt.’ Accessed 24 March 2014. http://www.porezna-uprava.hr/HR_Fiskalizacija/Stranice/Nagradna-igra-Bez-racuna-se-ne-racuna.aspx
   Google Scholar
• Thompson, P., and M. Alvesson. 2005. “Bureaucracy at Work: Misunderstandings and Mixed Blessings.” In The Values of Bureaucracy, edited by P. du Gay, 121–140. Oxford: Oxford University Press.
   Google Scholar
• Tobin, J. 1958. “Estimation of Relationships for Limited Dependent Variables.” Econometrica 26: 24–36.10.2307/1907382
   Web of Science ®Google Scholar
• Wanner, C. 2005. “Money, Morality and New Forms of Exchange in Postsocialist Ukraine.” Ethnos 70 (4): 515–537.10.1080/00141840500419782
   Web of Science ®Google Scholar
• Watson, T. J. 2003. Sociology, Work and Industry. London: Routledge.
   Google Scholar
• Webb, J. W., L. Tihanyi, R. D. Ireland, and D. G. Sirmon. 2009. “You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy.” Academy of Management Review 34: 492–510.10.5465/AMR.2009.40632826
   Web of Science ®Google Scholar
• Williams, C. C. 2013. “Evaluating Cross-National Variations in the Extent and Nature of Informal Employment in the European Union.” Industrial Relations Journal 44: 479–494.10.1111/irj.2013.44.issue-5-6
   Google Scholar
• Williams, C. C. 2014a. Confronting the Shadow Economy. Cheltenham: Edward Elgar.10.4337/9781782546047
   Google Scholar
• Williams, C. C. 2014b. “Out of the Shadows: A Classification of Economies by the Size and Character of Their Informal Sector.” Work, Employment and Society 28: 735–753.10.1177/0950017013501951
   Web of Science ®Google Scholar
• Williams, C. C. 2014c. “Explaining Cross-National Variations in the Size of the Shadow Economy in Central and Eastern Europe.” Debatte: Journal of Contemporary Central and Eastern Europe 22: 241–258.
   Google Scholar
• Williams, C. C., and I. Horodnic. 2015a. “Marginalisation and Participation in the Informal Economy in Central and Eastern European Nations.” Post-Communist Economies 27 (2): 153–169.10.1080/14631377.2015.1026686
   Web of Science ®Google Scholar
• Williams, C. C., and I. Horodnic. 2015b. “Rethinking the Marginalisation Thesis: An Evaluation of the Socio-Spatial Variations in Undeclared Work in the European Union.” Employee Relations 37 (1): 48–65.10.1108/ER-06-2014-0074
   Web of Science ®Google Scholar
• Williams, C. C., and A. Martinez. 2014a. “Explaining Cross-National Variations in Tax Morality in the European Union: An Exploratory Analysis.” Studies in Transition States and Societies 6: 5–17.
   Google Scholar
• Williams, C. C., and A. Martinez. 2014b. “Why Do Consumers Purchase Goods and Services in the Informal Economy?” Journal of Business Research 67: 802–806.10.1016/j.jbusres.2013.11.048
   Web of Science ®Google Scholar
• Williams, N., and T. Vorley. 2015. “Institutional Asymmetry: How Formal and Informal Institutions Affect Entrepreneurship in Bulgaria.” International Small Business Journal 33 (8): 840–861. doi:10.1177/0266242614534280.
   Web of Science ®Google Scholar
• Williams, C. C., S. Nadin, A. Kedir, and T. Vorley. 2013. “Evaluating the Extent and Nature of the Informalization of Employment Relations in South-East Europe.” European Journal of Industrial Relations 19: 91–107.10.1177/0959680113481732
   Web of Science ®Google Scholar