Austria -Shadow economy increases -February 04, 2015

According to a recent report rising unemployment and high tax and social insurance contributions are causing an increasing number of people to abandon formal employment and work in ‘shadow economies’. The author, economist Friedrich Schneider, has argued in the past that rather than trying to deter the shadow economy governments should embrace the entrepreneurship it spawns and lower taxes.

According to a recent report rising unemployment and high tax and social insurance contributions are causing an increasing number of people to abandon formal employment and work in ‘shadow economies’. The author, economist Friedrich Schneider, has argued in the past that rather than trying to deter the shadow economy governments should embrace the entrepreneurship it spawns and lower taxes. Despite a projected increase of 4.5% the country's shadow economy is still smaller than in most other EU countries, such as Germany (12.2%) or the UK (9.4%). Of the OECD countries, only Switzerland, the US, and New Zealand have a lower rate of unreported employment.

English: http://www.thelocal.at/20150204/austrias-shadow-economy-grows


For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Mariya Nikolova mnikolova@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. You may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.


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