THE SHADOW ECONOMY: ILLICIT WORK AND HOUSEHOLD PRODUCTION: A MICROANALYSIS OF WEST GERMANY

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This microanalysis of the shadow economy is on informal family income achieving strategies. In particular we analyze both sexes' paid illicit work as well as unpaid work in household production based on the representative West German Sfb3–Secondary Occupation Survey 1984. We estimate the influence of various socioeconomic variables including a legal occupation. As a result, illicit work and household production “Do‐It‐Yourself” activities are important informal family income achieving strategies. The respective regional state of the formal economy or one's own activities in social networks is of greater importance for informal economic activities than an individual income from formal economic activities. Copyright © 1993, Wiley Blackwell. All rights reserved
Original languageEnglish
JournalReview of Income and Wealth
Volume39
Issue number2
Pages (from-to)177-194
Number of pages18
ISSN0034-6586
DOIs
Publication statusPublished - 01.06.1993

Bibliographical note

This study is a revised version of a paper presented at the Fifth Congress of the European Economic Association, Lisboa, Portugal, August 31–September 2, 1990. The views expressed by the authors are their own and not necessarily those of their respective institutions. The research for this paper was carried out in the research project ‘Market and Non-market Activities of the Private Household’ headed by Merz, a project of the Sonderforschungsbereich 3 “Microanalytic Foundation of Social Policy” at the Universities of Frankfurt and Mannheim, Federal Republic of Germany. Financial support by the German National Science Foundation (DFG) is gratefully acknowledged.

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