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IZA
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The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries
by
Friedrich Schneider
(June 2002)
Abstract:
Using the currency demand and DYMIMIC approaches estimates are presented about the
size of the shadow economy in 22 Transition and 21 OECD countries. Over 2001/2002 in 21
OECD countries is the average size of the shadow economy (in percent of official GDP)
16.7% of “official” GDP and of 22 Transition countries 38.0%. The average size of the
shadow economy labor force (in percent of the population of working age) of the year
1998/99 in 7 OECD-countries is 15.3% and in 22 Transition countries is 30.2%. An increasing
burden of taxation and social security contributions combined with rising state regulatory
activities are the driving forces for the growth and size of the shadow economy (labor force).
Text: See Discussion Paper No. 514 
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