MONITORING THE HIDDEN ECONOMY IN MACEDONIA: TRENDS AND POLICY OPTIONS

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Executive Summary

Macedonia features in many discussions as a country with high hidden economy. The European Commission has repeatedly voiced its concerns in its regular country reports about the size and proliferation of hidden economy practices. Hidden employment or undeclared work in Macedonia is of particular concern to the authorities, provided the very high and stubborn levels of official unemployment and low employment levels. However, most studies and research on the matter involve a high level of ambiguity, as they refer to specific narrow outcomes of the hidden economy, usually towards a specific point in time, with dynamics being difficult to trace. The current report proposes a methodology that would allow the tracing of the dynamics of the hidden economy and its components (e.g. hidden turnover, hidden employment, etc.) over time. This would make possible for the Macedonian government and its European partners to follow the impact and assess the effectiveness of their policies for tackling the hidden economy…

 

 

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