Offering undeclared workers financial help during Covid19 pandemic can bring them out of shadows into the declared economy

Abstract

PurposeThe authors wanted to examine why undeclared workers had not received financial assistance in Europe during the pandemic and find the best way to help them and bring them out of the shadows.Design/methodology/approachTo identify those whose paid work is entirely undeclared, a Eurobarometer survey of undeclared work in Europe is reported conducted in September 2019, just prior to the pandemic, and involving 27,565 face-to-face interviews in 28 European countries.FindingsThe paid work of one in every 132 citizens in Europe comprises wholly of undeclared work and one in 28 work at least some of the time in the undeclared economy. These workers have received no support, but they are more likely to be financially vulnerable. A high percentage of undeclared workers are widowed, divorced and living in households with multiple persons.Originality/valueThe authors argue that short-term support for these individuals could not only help them to survive the pandemic financially, but also transform undeclared work into declared work with long-term benefits for individuals and the wider economy.