Access the full text.
Sign up today, get DeepDyve free for 14 days.
Sandra Sookram, Patrick Watson (2008)
Small-Business Participation in the Informal Sector of an Emerging EconomyThe Journal of Development Studies, 44
F. Schneider, Andreas Buehn, Claudio Montenegro (2010)
Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007World Bank Policy Research Working Paper Series
C. Williams, M. Shahid (2016)
Informal entrepreneurship and institutional theory: explaining the varying degrees of (in)formalization of entrepreneurs in PakistanEntrepreneurship & Regional Development, 28
A. Saeed, Attaullah Shah (2011)
Enhancing Tax Morale with Marketing Tactics: A Review of LiteraturePublic Economics: Taxation
M. Allingham, A. Sandmo (1972)
Income tax evasion: a theoretical analysisJournal of Public Economics, 1
Lt Lithuania, Sk Slovakia (2011)
Employment and Social Developments
W. Baumol, A. Blinder (1991)
Microeconomics: Principles and Policy
B. Torgler, F. Schneider (2007)
Shadow Economy, Tax Morale, Governance and Institutional Quality: A Panel AnalysisDevelopment Economics
Juin-jen Chang, Ching‐chong Lai (2004)
Collaborative tax evasion and social norms: why deterrence does not work, 56
H. Soto (2000)
The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else
A. Polese (2015)
INFORMALITY CRUSADES: WHY INFORMAL PRACTICES ARE STIGMATIZED, FOUGHT AND ALLOWED IN DIFFERENT CONTEXTS ACCORDING TO AN APPARENTLY UNUNDERSTANDABLE LOGIC, 2
R. Aidis, F. Welter, D. Smallbone, N. Isakova (2007)
Female entrepreneurship in transition economies: the case of Lithuania and UkraineFeminist Economics, 13
E. Autio, Kun Fu (2014)
Economic and political institutions and entry into formal and informal entrepreneurshipAsia Pacific Journal of Management, 32
G. Bruton, R. Ireland, D. Ketchen (2012)
Toward a Research Agenda on the Informal EconomyAcademy of Management Perspectives, 26
Leora Klapper, R. Amit, M. Guillén, Juan Quesada (2007)
Entrepreneurship and Firm Formation Across CountriesDevelopment Economics
F. Welter (2019)
Institutional Perspectives on Entrepreneurial Behavior in Challenging EnvironmentsEntrepreneurship and Context
Christian Daude, H. Gutierrez, Á. Melguizo (2013)
What Drives Tax Morale? A Focus on Emerging EconomiesHacienda Publica Espanola, 207
M. Thai, E. Turkina (2014)
Macro-level determinants of formal entrepreneurship versus informal entrepreneurshipJournal of Business Venturing, 29
Gretchen Helmke, S. Levitsky (2004)
Informal Institutions and Comparative Politics: A Research AgendaPerspectives on Politics, 2
Olumide Taiwo (2013)
Employment choice and mobility in multi‐sector labour markets: Theoretical model and evidence from GhanaInternational Labour Review, 152
Christopher Winship, L. Radbill (1994)
Sampling Weights and Regression AnalysisSociological Methods & Research, 23
John Thomas (1992)
Informal Economic Activity
C. Williams, S. Nadin (2013)
Harnessing the hidden enterprise cultureJournal of Small Business and Enterprise Development, 20
V. Kanniainen, J. Pääkkönen (2010)
Do the catholic and protestant countries differ by their tax morale?Empirica, 37
(2013)
The Informal Post-Socialist Economy : Embedded Practices and livelihoods
J. Alm, B. Torgler (2003)
Culture Differences and Tax Morale in the United States and in EuropeEuropean Public Law: National eJournal
Z. Slavnic (2010)
POLITICAL ECONOMY OF INFORMALIZATIONEuropean Societies, 12
D. Pfeffermann (1993)
The Role of Sampling Weights when Modeling Survey DataInternational Statistical Review, 61
T. Watson (1982)
Sociology, work, and industry
D. Gallin (2001)
Propositions on Trade Unions and Informal Employment in Times of GlobalisationAntipode, 33
C. Williams (2014)
Out of the shadows: a classification of economies by the size and character of their informal sectorWork, Employment & Society, 28
J. Coleman, C. Geertz (1965)
Old Societies and New States: The Quest for Modernity in Asia and Africa.American Sociological Review, 30
E. Friedman, Simon Johnson, Daniel Kaufmann, Pablo Zoido (1999)
Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 CountriesInstitutional & Transition Economics eJournal
K. Titaev (2014)
Jeremy Morris and Abel Polese, eds. The Informal Post-Socialist Economy: Embedded Practices and Livelihoods. London: Routledge, 2014, 6
J. Meriküll, K. Staehr (2010)
Unreported Employment and Envelope Wages in Mid-Transition: Comparing Developments and Causes in the Baltic CountriesComparative Economic Studies, 52
M. Davis (2004)
Planet of Slums
Gary Solon, Steven Haider, J. Wooldridge (2013)
What Are We Weighting For?The Journal of Human Resources, 50
Tālis Putniņš, A. Sauka (2014)
Measuring the Shadow Economy Using Company ManagersEntrepreneurship
S. Bureau, Jacqueline Fendt (2011)
Entrepreneurship in the Informal Economy: Why it MattersThe International Journal of Entrepreneurship and Innovation, 12
Sandro Giachi (2014)
Dimensiones Sociales del Fraude Fiscal: Confianza y Moral Fiscal en la España Contemporánea
B. Torgler (2004)
Tax morale in Asian countriesJournal of Asian Economics, 15
Justin Webb, G. Bruton, L. Tihanyi, R. Ireland (2013)
Research on entrepreneurship in the informal economy: Framing a research agendaJournal of Business Venturing, 28
Sheila Puffer, D. McCarthy, M. Boisot (2010)
Entrepreneurship in Russia and China: The Impact of Formal Institutional VoidsEntrepreneurship Theory and Practice, 34
K. Legge (1995)
Human Resource Management: Rhetorics and Realities
J. Molero, F. Pujol (2005)
Walking Inside the Potential Tax Evader’s Mind: Tax Morale Does MatterJournal of Business Ethics, 105
Justin Webb, L. Tihanyi, R. Ireland, David Sirmon (2009)
You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal EconomyInstitutions & Transition Economics: Underground Economy eJournal
Colin Williams, P. Renooy (2013)
Tackling Undeclared Work in 27 European Union Member States and Norway: Approaches and Measures Since 2008Labor: Supply & Demand eJournal
Justin Webb, R. Ireland, D. Ketchen (2014)
Toward a Greater Understanding of Entrepreneurship and Strategy in the Informal EconomyStrategic Entrepreneurship Journal, 8
N. Williams, T. Vorley (2015)
Institutional asymmetry: How formal and informal institutions affect entrepreneurship in BulgariaInternational Small Business Journal, 33
J. Martínez-Vázquez, B. Torgler (2009)
The Evolution of Tax Morale in Modern SpainJournal of Economic Issues, 43
Graham Benmore, Adam Palmer (1996)
HUMAN RESOURCE MANAGEMENT IN SMALL FIRMS: KEEPING IT STRICTLY INFORMALJournal of Small Business and Enterprise Development, 3
B. Torgler (2005)
Tax morale in Latin AmericaPublic Choice, 122
T. Watson (2002)
Sociology, Work and Industry : Seventh Edition
K. Meagher (2010)
Identity economics : social networks & the informal economy in Nigeria
C. Williams (2015)
PART II ARTICLES
Bogdan Mróz (2012)
Entrepreneurship in the shadow: faces and variations of Poland's informal economyInternational Journal of Economic Policy in Emerging Economies, 5
S. Lohr, J. Liu (1994)
A comparison of weighted and unweighted analyses in the national Crime Victimization SurveyJournal of Quantitative Criminology, 10
A. Denzau, D. North (1994)
Shared Mental Models: Ideologies and Institutions
C. Williams (2006)
Beyond the Sweat Shop: 'Off-the-Books' Work in Contemporary England
N. Charron, L. Dijkstra, V. Lapuente (2014)
Mapping the Regional Divide in Europe: A Measure for Assessing Quality of Government in 206 European RegionsSocial Indicators Research, 122
B. Kus (2014)
The informal road to markets: Neoliberal reforms, private entrepreneurship and the informal economy in TurkeyInternational Journal of Social Economics, 41
J. Castro, Susanna Khavul, G. Bruton (2014)
Shades of Grey: How do Informal Firms Navigate Between Macro and Meso Institutional Environments?Strategic Entrepreneurship Journal, 8
Kwame Adom (2014)
Beyond the Marginalization Thesis: An Examination of the Motivations of Informal Entrepreneurs in Sub-Saharan AfricaThe International Journal of Entrepreneurship and Innovation, 15
D. North (1990)
Institutions, Institutional Change and Economic Performance: Economic performance
Kristina Murphy (2005)
Regulating More Effectively: The Relationship between Procedural Justice, Legitimacy, and Tax Non-ComplianceJournal of Law and Society, 32
A. Siqueira, Justin Webb, G. Bruton (2016)
Informal Entrepreneurship and Industry ConditionsEntrepreneurship Theory and Practice, 40
R. Cummings, J. Martínez-Vázquez, M. McKee, B. Torgler (2009)
Tax morale affects tax compliance : evidence from surveys and an artefactual field experiment
Augustine Nwabuzor (2005)
Corruption and Development: New Initiatives in Economic Openness and Strengthened Rule of LawJournal of Business Ethics, 59
Geoffrey Kistruck, Justin Webb, Christopher Sutter, Anastasia Bailey (2015)
The double-edged sword of legitimacy in base-of-the-pyramid marketsJournal of Business Venturing, 30
C. Williams, Álvaro Martínez (2014)
Is the Informal Economy an Incubator for New Enterprise Creation? A Gender Perspective
L. Dau, Alvaro Cuervo‐Cazurra (2014)
To formalize or not to formalize: Entrepreneurship and pro-market institutionsJournal of Business Venturing, 29
D. Enste (2010)
Regulation and shadow economy: empirical evidence for 25 OECD-countriesConstitutional Political Economy, 21
M. Alvesson, P. Thompson (2005)
Bureaucracy at work: misunderstandings and mixed blessings
Ignacio Lago-Peñas, Santiago Lago‐Peñas (2010)
The Determinants of Tax Morale in Comparative Perspective: Evidence from European CountriesEuropean Journal of Political Economy, 26
Christopher Sutter, Justin Webb, Geoffrey Kistruck, Anastasia Bailey (2013)
Entrepreneurs' responses to semi-formal illegitimate institutional arrangementsJournal of Business Venturing, 28
W. Baumol (1990)
Entrepreneurship: Productive, Unproductive, and DestructiveJournal of Political Economy, 98
Purpose – The purpose of this paper is to advance a new explanation for cross-country variations in the participation of small businesses in the informal economy. Drawing upon institutional theory, it proposes that the greater the asymmetry between the codified laws and regulations of formal institutions (state morality) and the unwritten socially shared rules of informal institutions (civic morality), the greater is the propensity of small businesses to participate in the informal economy. To analyse this, the extent to which small businesses evade payroll taxes by paying employees an undeclared (envelope) wage in addition to their official declared salary is analysed. Design/methodology/approach – To evaluate this, data are reported from a 2013 Eurobarometer survey involving 5,174 face-to-face interviews with employees in small businesses across the 28 member states of the European Union (EU-28). Findings – The finding is that small businesses display a greater propensity to engage in this informal wage practice in countries where there is a higher degree of asymmetry between the codified laws and regulations of formal institutions (state morality) and the unwritten socially shared rules of informal institutions (civic morality). A multi-level logistic regression analysis reveals these to be countries which have lower qualities of governance, lower levels of taxation and intervention in the labour market and less effective social transfer systems. Research limitations/implications – The major limitation of this study is that it has only examined whether employees in small businesses receive informal wages. Future cross-country surveys should analyse a wider range of ways in which small businesses participate in the informal economy such as under-reporting turnover. Originality/value – This is the first known analysis of cross-country variations in the participation of small businesses in the informal economy.
Journal of Small Business and Enterprise Development – Emerald Publishing
Published: Feb 15, 2016
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.