Abstract
This paper proposes that the prevalence of illegitimate wage practices in Southern European societies results from the discord between the formal rules (formal institutions) and the socially shared unwritten rules that reflect citizens' beliefs (informal institutions). To evaluate this, a 2013 survey is reported on whether employers in five Southern European countries fraudulently evade tax and social security payments by paying employees a portion of their salary off the books. A strong association is revealed between the extent of wage under-reporting and the degree of institutional asymmetry across these societies. The implications for theorising illegitimate wage practices are then explored.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
