Abstract
The article examines the shadow economy as a phenomenon and its features. The shadow economy is a phenomenon that accompanies almost every economy, both developed and undeveloped. There is no common and clearly defined understanding of the essence and classification of the concept of shadow economy. The country's shadow economy exists as a result of the interaction of psychological and cultural factors that cannot be influenced in the short term. A feature of the shadow economy is a significant adaptability to external factors, a certain flexibility and ability to self-regulate. Indicators are indicated that have a significant impact on the dynamics of the size of the shadow economy. Approaches to determining the reasons for the existence of the shadow economy are given. Separately, the main reasons for the growth of the shadow economy in the developed countries of the world are indicated in percentage terms. The level of shadowing of the economy is investigated using various methods. The features of the shadow labor market and its components are considered. The shadow market is provided by the discrepancy between the actual and formal conditions for hired workers. The concept of shadow employment, the number of informally employed population in general and by type of economic activity and the reasons for the existence of the shadow labor market are analyzed. Shadow employment hinders the normal formation of state budget revenues. In order to estimate the size of the shadow economy, methods are used that can be divided into three groups: direct, indirect and mixed. There has been a decrease in the actual number of informally employed people, which is associated with the COVID 19 pandemic, which forced the economies of countries to reduce the number of both formal and informal workers. Non-observance of social norms and non-payment of taxes completely violate a kind of agreement between the population and the state, leading to a crisis of governance and distrust in the mechanism of state regulation and a significant decrease in macroeconomic indicators. Measures are recommended to reduce the level of the shadow economy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have