Evaluating the participation of marginalized populations in undeclared work in the Baltic Sea countries

Abstract:

To evaluate the ‘marginalization thesis’ which asserts that marginalized populations are more likely to participate in undeclared work, we analyse a 2013 Eurobarometer survey of eight Baltic Sea countries, namely four Western countries (Denmark, Finland, Germany and Sweden) and four post-Soviet countries (Estonia, Latvia, Lithuania and Poland).

Finding that across both the Western and post-Soviet Baltic Sea countries, some marginalized populations (e.g. those having difficulties paying household bills, younger people) are significantly more likely to participate in undeclared work, and others are not (e.g. women, those with a high level of tax morality), a more nuanced and variegated understanding of the marginalization thesis is developed that is valid across both Western and post-Soviet Baltic Sea countries. The paper concludes by discussing the theoretical and policy implications.