Premium
Evaluating the Illegal Employer Practice of Under‐Reporting Employees’ Salaries
Author(s) -
Williams Colin C.,
Horodnic Ioana A.
Publication year - 2017
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/bjir.12179
Subject(s) - eurobarometer , business , distribution (mathematics) , good practice , accounting , public economics , public relations , economics , political science , economic policy , european union , mathematical analysis , mathematics , engineering , engineering ethics
This article advances understanding of the prevalence and distribution of the illegal employer practice of under‐reporting employees’ salaries, explains this practice and evaluates policy approaches. Analysing a 2013 Eurobarometer survey of 11,025 employees in 28 European countries, one in 33 employees receive under‐reported salaries, mostly in small businesses and vulnerable groups (e.g. unskilled workers, with lower education levels and financial difficulties). Explaining this practice, not as an individual criminal act that increasing the risk of detection can tackle, but as a symptom of systemic problems, which require improvements both in tax morale at the individual level and in the formal institutional environment at the country level to resolve, we then discuss the implications for theory and policy.