Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective

Since the turn of the millennium, there has been widespread recognition that the informal economy is a sizeable and growing feature in the global economy. To explain this, neo-liberals have contended that the informal economy is a direct result of over-regulation, high taxes and state interference i...

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Main Author: Colin C Williams
Format: Article
Language:English
Published: UACES 2013-05-01
Series:Journal of Contemporary European Research
Subjects:
Online Access:https://jcer.net/index.php/jcer/article/view/496
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spelling doaj-84bf0630d08d45f195262a6b8fefb7212020-11-25T04:02:15ZengUACESJournal of Contemporary European Research1815-347X2013-05-0192Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory PerspectiveColin C Williams0University of SheffieldSince the turn of the millennium, there has been widespread recognition that the informal economy is a sizeable and growing feature in the global economy. To explain this, neo-liberals have contended that the informal economy is a direct result of over-regulation, high taxes and state interference in the free market. Their remedy, therefore, is de-regulation, tax reductions and minimal state intervention. This article evaluates critically this neo-liberal perspective towards the informal economy. Reviewing cross-national comparative data from the 27 member states of the European Union, the finding is that few people explain their own and others’ participation in the informal economy using such rationales, that higher tax rates are not correlated with larger informal economies, and that lower levels of state intervention are correlated with larger (not smaller) informal economies. The article concludes by refuting the neo-liberal approach as a remedy and calling for more, rather than less, regulation of the economy.https://jcer.net/index.php/jcer/article/view/496shadow economyhidden economyinformal sectorinformal employmentEurope
collection DOAJ
language English
format Article
sources DOAJ
author Colin C Williams
spellingShingle Colin C Williams
Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective
Journal of Contemporary European Research
shadow economy
hidden economy
informal sector
informal employment
Europe
author_facet Colin C Williams
author_sort Colin C Williams
title Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective
title_short Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective
title_full Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective
title_fullStr Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective
title_full_unstemmed Tackling Europe’s Informal Economy: A Critical Evaluation of the Neo-liberal De-regulatory Perspective
title_sort tackling europe’s informal economy: a critical evaluation of the neo-liberal de-regulatory perspective
publisher UACES
series Journal of Contemporary European Research
issn 1815-347X
publishDate 2013-05-01
description Since the turn of the millennium, there has been widespread recognition that the informal economy is a sizeable and growing feature in the global economy. To explain this, neo-liberals have contended that the informal economy is a direct result of over-regulation, high taxes and state interference in the free market. Their remedy, therefore, is de-regulation, tax reductions and minimal state intervention. This article evaluates critically this neo-liberal perspective towards the informal economy. Reviewing cross-national comparative data from the 27 member states of the European Union, the finding is that few people explain their own and others’ participation in the informal economy using such rationales, that higher tax rates are not correlated with larger informal economies, and that lower levels of state intervention are correlated with larger (not smaller) informal economies. The article concludes by refuting the neo-liberal approach as a remedy and calling for more, rather than less, regulation of the economy.
topic shadow economy
hidden economy
informal sector
informal employment
Europe
url https://jcer.net/index.php/jcer/article/view/496
work_keys_str_mv AT colincwilliams tacklingeuropesinformaleconomyacriticalevaluationoftheneoliberalderegulatoryperspective
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