THE CORONAVIRUS PANDEMIC AND EUROPE’S UNDECLARED ECONOMY: IMPACTS AND A POLICY PROPOSAL

Main Article Content

Colin C. Williams Aysegul Kayaoglu

Abstract

The coronavirus pandemic has led to a loss of revenues for enterprises and workers due to workplace closures and restrictions on movement to ‘flatten the curve’. In response, governments have made available temporary financial support to enterprises and workers affected. This paper evaluates a group currently excluded from this support, namely enterprises and workers in the undeclared economy, and a possible government policy response. To identify those involved, a 2019 Eurobarometer survey of undeclared work in Europe is reported. This reveals that one in every 132 European citizens relies wholly on undeclared earnings and the sectors and population groups involved. Given their reduced revenues and inability to access the temporary financial support, a voluntary disclosure initiative is recommended which brings undeclared enterprises and workers into the declared economy and onto the radar of state authorities by offering access to this temporary financial support if they disclose their previous undeclared work.

Article Details

How to Cite
Williams, C., & Kayaoglu, A. (2020). THE CORONAVIRUS PANDEMIC AND EUROPE’S UNDECLARED ECONOMY: IMPACTS AND A POLICY PROPOSAL. The South East European Journal of Economics and Business, 15(1), 80-92. Retrieved from http://journal.efsa.unsa.ba/index.php/see/article/view/1301
Section
Scientific and Professional papers: Economics and Business
Author Biographies

Colin C. Williams, Sheffield University Management School

Colin C. Williams (corresponding author)
Professor
Management School
University of Sheffield
E-mail: C.C.Williams@sheffield.ac.uk
Address: Sheffield University Management School,
University of Sheffield,
Conduit Road, Sheffield S10 1FL, United Kingdom

Aysegul Kayaoglu, Istanbul Technical University

Aysegul Kayaoglu is an Associate Professor in the Department of Economics at Istanbul Technical University, Istanbul, Turkey; e-mail: aysegulkayaoglu@gmail.com.