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2016 | OriginalPaper | Buchkapitel

2. The Informal Economy in Western Europe

verfasst von : Dominique Boels

Erschienen in: The Informal Economy

Verlag: Springer International Publishing

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Abstract

The aim of this chapter is to introduce the concept of the informal economy, and its manifestation in Western Europe. Therefore, I start by discussing the most influential definitions and taxonomies of the informal economy. This overview is far from exhaustive and does not cover definitions of related terms such as informal employment, informal work and so on. It is aimed more at illustrating the problematic nature of the conceptualisation and at stimulating the use of broad working definitions for empirical purposes than at offering an exhaustive overview. After clarifying the working definition, I problematise the measurement of the informal economy and offer some recent findings regarding its size and prevalence in Western Europe. Subsequently, I explore the underlying causes and determinants of the informal economy. Having done this, I proceed with a European literature review of the informal economy and seasonal work, street selling and prostitution (i.e., the three cases covered in the remainder of the book). The chapter ends with an overview of the methodology used in this book.

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Vorheriges Kapitel Introduction
Nächstes Kapitel Seasonal work in fruit-growing and the Informal Economy
Fußnoten
1
Surprisingly, one author (Martha Chen) considers the criminal economy as part of the informal economy in one paper (Chen 2004) but not in another one (Chen et al. 2001). General statements are made in both papers: it is not the case that in one paper a working definition is only presented for empirical purposes.
 
2
About the different terms and definitions of informal economy used in literature.
 
3
I added ‘enforced’ because I argue that policy combines both a regulation and enforcement aspect. It is only the combination of both that leads to adequate registration of economic activities. For, if no enforcement existed, more concealed activities would exist.
 
4
This estimate does not yet include the estimates for illegal activities. As from 2014, the Belgian statistics include estimates for drug trade, prostitution and smuggling (van Mechelen 2014).
 
5
In 2007, these numbers were 6 % and 56 % respectively (European Commission 2007). Unfortunately, due to the low incidence of reported undeclared work, the Eurobarometer does not procure information per country regarding, for instance, type of undeclared work or reasons for supplying it (European Commission 2014).
 
6
Countries included in this category are Austria, Belgium, France, Germany, Ireland, Luxemburg, the Netherlands, and the UK.
 
7
Which, in the study, is defined as all legitimate activities where payments received by individuals are not declared to authorities.
 
8
A greater overview of these models can be found in Coletto (2010).
 
9
Defined by the authors as all market-based legal production of goods and services that are deliberately concealed from public authorities for the following reasons: (1) to avoid payment of income, value added or other taxes, (2) to avoid payment of social security contributions, (3) to avoid having to meet certain legal labour market standards, (4) to avoid complying with certain administrative obligations.
 
10
The authors argue that indigenous Belgians hardly apply as seasonal workers. The temporary and unskilled nature of the work, the low wage and the perceived image of the sector are believed to contribute to this.
 
11
I use the term migrant because these people live in another country and come for a delineated period to Belgium.
 
12
Key figures because they have a broad network and possess communication skills (e.g., English, email, etc.) that are crucial in terms of recruitment.
 
13
In the Act, a gangmaster is defined as ‘a person who supplies a worker to do work … for another person’ (Anderson and Rogaly 2005, 22).
 
14
In relation to the entry of different countries into the EU.
 
15
For instance, the database of the Social Security agencies.
 
16
That is, wages lower than required by law.
 
17
However, it is not because the reviewed literature focuses strongly on migrant informal labour that national informal labour does not take place. Still, based on this overview we can infer the existence of a displacement of labour force (instead of a displacement of production), which is linked to globalisation.
 
18
E.g., rural exodus in the 1950s and 1960s.
 
19
E.g. pressure for technical modernisation.
 
20
E.g., rejection of low status, unskilled jobs in rural areas by young generations (see also Labrianidis and Sykas 2009). The combination of these factors influenced the decline of the family-based (informal) labour in Greek agriculture (Kasimis and Papadopoulos 2005).
 
21
Weitzer (2012, 10) uses the term ‘oppression paradigm’ in this respect: ‘the oppression paradigm holds that sex work is the quintessential expression of patriarchal gender relations and male domination’.
 
22
However, according to Scoular (2010), clients are not necessarily criminalised under such policies.
 
24
As Ponsaers et al. (2008, 646) argue, criminologists tend—in contradiction to economists—to term both illegal and unregulated activities as informal economic activities. In this respect, markets where prostitution is illegal equally fall within an informal economy.
 
25
Although the line between protecting, controlling and exploiting is thin.
 
26
Sex work and prostitution have been previously studied in Belgium, but these studies have focused on drug use amongst sex workers (e.g., Decorte et al. 2011) or effectiveness of prevention measures (e.g., van Nunen et al. 2012), not on informality.
 
27
The electronic archive of the Belgian newspapers (Mediargus) was briefly searched using the search terms ‘zwartwerk (black work)’, ‘fraud’ and ‘fruit sector’. This search produced a list of 28 articles published between 1995 and 2011. Of these 28 articles, 4 reported a decline of black labour and illegal employment. The other 24 reported on inspections in the sector, recorded infractions (illegal employment, undeclared labour, social fraud, fiscal fraud) and a rise in the same.
 
28
That is, without grammatical or other tidying up (Silverman 2001). In a small minority of cases, recording failed due to technical problems, because it was not allowed by respondents or because it was not feasible due to practical difficulties.
 
29
E.g., regulation.
 
30
E.g., working conditions.
 
31
E.g., start work.
 
32
I did not make use of in vivo codes, which reflect exact wordings of respondents (Creswell 2007).
 
33
E.g., interviews with informal workers, interviews with social workers, case files.
 
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Metadaten
Titel
The Informal Economy in Western Europe
verfasst von
Dominique Boels
Copyright-Jahr
2016
Buch
The Informal Economy

Print ISBN: 978-3-319-43122-2

Electronic ISBN: 978-3-319-43123-9

Copyright-Jahr: 2016

DOI
https://doi.org/10.1007/978-3-319-43123-9_2