5,851
Views
31
CrossRef citations to date
0
Altmetric
Original Articles

Explaining and tackling the shadow economy in Estonia, Latvia and Lithuania: a tax morale approach

&
Pages 81-98 | Received 26 Nov 2014, Accepted 28 Oct 2015, Published online: 12 Nov 2015

References

  • Allingham, M., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1, 323–338. doi: 10.1016/0047-2727(72)90010-2
  • Alm, J., & Torgler, B. (2006). Culture differences and tax morale in the United States and in Europe. Journal of Economic Psychology, 27, 224–246. doi: 10.1016/j.joep.2005.09.002
  • Alm, J., & Torgler, B. (2011). Do ethics matter? Tax compliance and morality. Journal of Business Ethics, 101, 635–651. doi: 10.1007/s10551-011-0761-9
  • Andrews, D., Caldera Sanchez, A., & Johansson, A. (2011). Towards a better understanding of the informal economy (OECD Economics Department Working Paper no. 873). Paris: OECD.
  • Barbour, A., & Llanes, M. (2013). Supporting people to legitimise their informal businesses. York: Joseph Rowntree Foundation.
  • Baumol, W. J., & Blinder, A. (2008). Macroeconomics: Principles and policy. Cincinnati, OH: South-Western Publishing.
  • Brill, L. (2011). Women's participation in the informal economy: What can we learn from Oxfam's work? Manchester: Oxfam.
  • Cannari, L., & D'Alessio, G. (2007). Le Opiniomi degli Italiani sull'Evasione Fiscale. Rome: Temi di Discussione, Bank of Italy.
  • Clotfelter, C. T. (1983). Tax evasion and tax rates: An analysis of individual returns. Review of Economics and Statistics, 65, 363–373. doi: 10.2307/1924181
  • Cook, D. (1997). Poverty, crime and punishment. London: Child Poverty Action Group.
  • Cummings, R. G., Martinez-Vazquez, J., McKee, M., & Torgler, B. (2009). Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment. Journal of Economic Behaviour & Organization, 70, 447–457. doi: 10.1016/j.jebo.2008.02.010
  • Cunska, Z., Ketels, C., Paalzow, A., & Vanags, A. (2013). Latvia competitiveness report. Riga: Stockholm School of Economics in Riga/Baltic International Centre for Economic Policy Studies.
  • D'Arcy, M. (2011). Why do citizens assent to pay tax? legitimacy, taxation and the African State (Afrobarometer Working Papers 126). Accra: Afrobarometer.
  • Daude, C., Gutiérrez, H., & Melguizo, A. (2013). What drives tax morale? A focus on emerging economies. Review of Public Economics, 207, 9–40.
  • Daude, C., & Melguizo, A. (2010). Taxation and more representation? On fiscal policy, social mobility and democracy in Latin America (OECD Development Centre Working Paper 294). Paris: OECD.
  • Dekker, H., Oranje, E., Renooy, P., Rosing, F., & Williams, C. C. (2010). Joining up the fight against undeclared work in the European Union. Brussels: DG Employment, Social Affairs and Equal Opportunities.
  • Eurofound. (2013). Tackling undeclared work in 27 European Union member states and Norway: Approaches and measures since 2008. Dublin: Author.
  • European Commission. (2007). Stepping up the fight against undeclared work. Brussels: Author.
  • Giachi, S. (2014). Social dimensions of tax evasion: Trust and tax morale in contemporary Spain. Revista Española de Investigaciones Sociológicas, 145, 73–98.
  • Halla, M. (2010). Tax morale and compliance behaviour: First evidence on a causal link. Bonn: IZA Discussion Paper 4918.
  • Helmke, G., & Levitsky, S. (2004). Informal institutions and comparative politics: A research agenda. Perspectives on Politics, 2, 725–740. doi: 10.1017/S1537592704040472
  • Hug, S., & Spörri, F. (2011). Referendums, trust and tax evasion. European Journal of Political Economy, 27(1), 120–131. doi: 10.1016/j.ejpoleco.2010.06.005
  • International Labour Organisation. (2011). Statistical update on employment in the informal economy. Geneva: Author.
  • International Labour Organisation. (2012). Statistical update on employment in the informal economy. Geneva: Author.
  • International Labour Organisation. (2013). Women and men in the informal economy: Statistical picture. Retrieved November 18, 2014, from http://laborsta.ilo.org/informal_economy_E.html
  • International Labour Organisation. (2014). Transitioning from the informal to the formal economy. Report V (1), International Labour Conference, 103rd Session (2014). Geneva: Author.
  • Kanniainen, V., & Pääkkönen, J. (2010). Do the catholic and protestant countries differ by their tax morale? Empirica, 37, 271–290. doi: 10.1007/s10663-009-9108-5
  • Karnite, R. (2013). SMARTS student competition, Latvia. Retrieved from http://eurofound.europa.eu/observatories/emcc/case-studies/tackling-undeclared-work-in-europe/smarts-student-competition-latvia
  • Kastlunger, B., Lozza, E., Kirchler, E., & Schabmann, A. (2013). Powerful authorities and trusting citizens: The slippery slope framework and tax compliance in Italy. Journal of Economic Psychology, 34, 36–45. doi: 10.1016/j.joep.2012.11.007
  • Kesteloot, C., & Meert, H. (1999). Informal spaces: The geography of informal economic activities in Brussels. International Journal of Urban and Regional Research, 23, 232–251. doi: 10.1111/1468-2427.00193
  • Kirchgässner, G. (2010). Tax morale, tax evasion and the shadow economy (St Gallen: Discussion Paper no 2010–17). Department of Economics, University of St. Gallen.
  • Kline, P. (2000). The handbook of psychological testing (2nd ed.). London: Routledge.
  • Kukk, M., & Staehr, K. (2014). Income underreporting by households with business income: Evidence from Estonia. Post-Communist Economies, 26, 257–276. doi: 10.1080/14631377.2014.904110
  • Lago-Peñas, I., & Lago-Peñas, S. (2010). The determinants of tax morale in comparative perspective: Evidence from European countries. European Journal of Political Economy, 26, 441–453. doi: 10.1016/j.ejpoleco.2010.06.003
  • Legge, K. (1995). Human resource management: Rhetorics and realities. Basingstoke: Macmillan.
  • Leonard, M. (1994). Informal economic activity in Belfast. Aldershot: Avebury.
  • Leonard, M. (1998). Invisible work, invisible workers: The informal economy in Europe and the US. London: Macmillan.
  • Leventhal, G. S. (1980). What should be done with equity theory? New approaches to the study of fairness in social relationships. In K. Gergen, M. Greenberg, & R. Willis (Eds.), Social exchange: Advances in theory and research (pp. 27–55). New York, NY: Plenum Press.
  • Luttmer, E. F. P., & Singhai, M. (2014). Tax morale. Journal of Economic Perspectives, 28(4), 149–168. doi: 10.1257/jep.28.4.149
  • Martínez-Vázquez, J., & Torgler, B. (2009). The evolution of tax morale in modern Spain. Journal of Economic Issues, 43, 1–28. doi: 10.2753/JEI0021-3624430101
  • McKerchar, M., Bloomquist, K., & Pope, J. (2013). Indicators of tax morale: An exploratory study. Journal of Tax Research, 11, 5–22.
  • Meriküll, J., & Staehr, K. (2010). Unreported employment and envelope wages in mid-transition: Comparing developments and causes in the Baltic countries. Comparative Economic Studies, 52, 637–670. doi: 10.1057/ces.2010.17
  • Molero, J. C., & Pujol, F. (2012). Walking inside the potential tax evader's mind: Tax morale does matter. Journal of Business Ethics, 105, 151–162. doi: 10.1007/s10551-011-0955-1
  • Morris, J., & Polese, A. (Eds.). (2013). The informal post-socialist economy: Embedded practices and livelihoods. London: Routledge.
  • Murphy, K. (2005). Regulating more effectively: The relationship between procedural justice, legitimacy and tax non-compliance. Journal of Law and Society, 32, 562–589. doi: 10.1111/j.1467-6478.2005.00338.x
  • North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.
  • Nurmela, K. (2013). Information campaign on tax compliance, Estonia. Retrieved from http://eurofound.europa.eu/observatories/emcc/case-studies/tackling-undeclared-work-in-europe/information-campaign-on-tax-compliance-estonia
  • OECD. (2012). Reducing opportunities for tax non-compliance in the underground economy. Paris: Author.
  • Ordóñez, J. C. L. (2014). Tax collection, the informal sector, and productivity. Review of Economic Dynamics, 17(2), 262–286. doi: 10.1016/j.red.2013.07.004
  • Orviska, M., & Hudson, J. (2002). Tax evasion, civic duty and the law abiding citizen. European Journal of Political Economy, 19(1), 83–102. doi: 10.1016/S0176-2680(02)00131-3
  • Pedersen, S. (2003). The shadow economy in Germany, Great Britain and Scandinavia: A measurement based on questionnaire surveys. Copenhagen: The Rockwool Foundation Research Unit.
  • Pfau-Effinger, B. (2009). Varieties of undeclared work in European societies. British Journal of Industrial Relations, 47, 79–99. doi: 10.1111/j.1467-8543.2008.00711.x
  • Pfeffermann, D. (1993). The role of sampling weights when modelling survey data. International Statistical Review, 61, 317–337. doi: 10.2307/1403631
  • Putniņš, T., & Sauka, A. (2011). Size and determinants of shadow economies in the Baltic States. Baltic Journal of Economics, 11(2), 5–25. doi: 10.1080/1406099X.2011.10840498
  • Putniņš, T., & Sauka, A. (2012). SSE Riga shadow index for the Baltic countries 2009–2011. Riga: SSE Riga.
  • Putniņš, T., & Sauka, A. (2013). SSE Riga shadow index for the Baltic countries 2009–2012. Riga: SSE Riga.
  • Putniņš, T. J., & Sauka, A. (2014). SSE Riga shadow index for the Baltic countries 2009–2013. Riga: SSE Riga.
  • Putniņš, T. J., & Sauka, A. (2015). Measuring the shadow economy using company managers. Journal of Comparative Economics, 43(2), 471–490. doi: 10.1016/j.jce.2014.04.001
  • Rani, U., Belser, P., Oelz, M., & Ranjbar, S. (2013). Minimum wage coverage and compliance in developing countries. International Labour Review, 152, 381–410. doi: 10.1111/j.1564-913X.2013.00197.x
  • Richardson, G. (2006). Determinants of tax evasion: A cross-country investigation. Journal of International Accounting, Auditing and Taxation, 15, 150–169. doi: 10.1016/j.intaccaudtax.2006.08.005
  • Russo, F. F. (2013). Tax morale and tax evasion reports. Economics Letters, 121, 110–114. doi: 10.1016/j.econlet.2013.07.004
  • Sauka, A., & Putniṇš, T. (2011). Shadow economy index for the Baltic countries 2009 and 2010. Riga: Stockholm School of Economics in Riga.
  • Schneider, F. (Ed.). (2008). The hidden economy. Cheltenham: Edward Elgar.
  • 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. Retrieved from November 6, 2014, from http://www.econ.jku.at/members/Schneider/files/publications/2013/ShadEcEurope31_Jan2013.pdf
  • Schneider, F., & Williams, C. C. (2013). The shadow economy. London: Institute of Economic Affairs.
  • Scott, W. R. (1995). Institutions and organizations. Thousand Oaks, CA: Sage.
  • Sepulveda, L., & Syrett, S. (2007). Out of the shadows? formalisation approaches to informal economic activity. Policy and Politics, 35, 87–104. doi: 10.1332/030557307779657739
  • Sharon, L., & Liu, J. (1994). A comparison of weighted and unweighted analyses in the national crime victimization survey. Journal of Quantitative Criminology, 10, 343–360. doi: 10.1007/BF02221280
  • Slavnic, Z. (2010). Political economy of informalisation. European Societies, 12, 3–23. doi: 10.1080/14616690903042724
  • Solon, G., Haider, S. J., & Wooldridge, J. (2013). What are we weighting for? (National Bureau of Economic Research Working Paper No. 18859). Cambridge, MA: National Bureau of Economic Research.
  • Stănculescu, M. (2005). Working conditions in the informal sector. South East Europe Review for Labour and Social Affairs, 10, 79–93.
  • Taiwo, O. (2013). Employment choice and mobility in multi-sector labour markets: Theoretical model and evidence from Ghana. International Labour Review, 152, 469–492. doi: 10.1111/j.1564-913X.2013.00189.x
  • Thompson, P., & Alvesson, M. (2005). Bureaucracy at work: Misunderstandings and mixed blessings. In P. du Gay (Ed.), The values of bureaucracy (pp. 121–140). Oxford: Oxford University Press.
  • Torgler, B. (2004). Tax morale in Asian countries. Journal of Asian Economics, 15, 237–266. doi: 10.1016/j.asieco.2004.02.001
  • Torgler, B. (2005a). Tax morale and direct democracy. European Journal of Political Economy, 21, 525–531. doi: 10.1016/j.ejpoleco.2004.08.002
  • Torgler, B. (2005b). Tax morale in Latin America. Public Choice, 122, 133–157. doi: 10.1007/s11127-005-5790-4
  • Torgler, B. (2006). The importance of faith: Tax morale and religiosity. Journal of Economic Behavior and Organization, 61, 81–109. doi: 10.1016/j.jebo.2004.10.007
  • Torgler, B. (2007). Tax compliance and morale: A theoretical and empirical analysis. Cheltenham: Edward Elgar.
  • Torgler, B. (2011). Tax morale and compliance: Review of evidence and case studies for Europe (World Bank Policy Research Working Paper 5922). Washington, DC: World Bank.
  • Torgler, B., & Schneider, F. (2007). Shadow economy, tax morale, governance and institutional quality: A panel analysis (IZA Discussion Paper no. 2563). Bonn: IZA.
  • Torgler, B., & Schneider, F. (2009). The impact of tax morale and institutional quality on the shadow economy. Journal of Economic Psychology, 30, 228–245. doi: 10.1016/j.joep.2008.08.004
  • TUC. (2008). Hard work, hidden lives: The short report of the commission on vulnerable employment. London: Author.
  • Watson, T. J. (2003). Sociology, work and industry. London: Routledge.
  • Williams, C. C. (2004). Cash-in-hand work: The underground sector and the hidden economy of favours. Basingstoke: Palgrave Macmillan.
  • 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. doi: 10.1111/irj.12030
  • Williams, C. C. (2014a). Confronting the shadow economy: Evaluating tax compliance and behaviour policies. Cheltenham: Edward Elgar.
  • Williams, C. C. (2014b). Explaining cross-national variations in the prevalence of envelope wages: Some lessons from a 2013 Eurobarometer survey. Industrial Relations Journal, 45, 524–542. doi: 10.1111/irj.12077
  • Williams, C. C. (2014c). Out of the shadows: A classification of economies by the size and character of their informal sector. Work, Employment and Society, 28, 735–753. doi: 10.1177/0950017013501951
  • Williams, C. C. (2014d). Evaluating cross-national variations in envelope wage payments in East-Central Europe. Economic and Industrial Democracy: an International Journal, 36, 283–303. doi: 10.1177/0143831X13505120
  • Williams, C. C. (2015). Tackling employment in the informal economy: A critical evaluation of the neo-liberal policy approach. Economic and Industrial Democracy: An International Journal. doi:10.1177/0143831X14557961
  • Williams, C. C., Franic, J., & Dzhekova, R. (2014). Explaining and tackling the undeclared economy in Bulgaria: An institutional asymmetry perspective. The South-East European Journal of Economics and Business, 9(2), 33–45.
  • Williams, C. C., & Horodnic, I. (2015). Explaining and tackling envelope wages in the Baltic Sea region. Baltic Journal of Management, 10, 295–312. doi: 10.1108/BJM-10-2014-0153
  • Williams, C. C., & Martinez, A. (2014). Explaining cross-national variations in tax morality in the European Union: An exploratory analysis. Studies in Transition States and Societies, 6, 5–17.
  • Williams, C. C., Round, J., & Rodgers, P. (2013). The role of informal economies in the post-Soviet world: The end of transition? London: Routledge.
  • Williams, C. C., & Windebank, J. (2001). Reconceptualising paid informal exchange: Some lessons from English cities. Environment and Planning A, 33, 121–140. doi: 10.1068/a33155
  • Winship, C., & Radbill, L. (1994). Sampling weights and regression analysis. Sociological Methods and Research, 23, 230–257. doi: 10.1177/0049124194023002004