Estimate of the Underground Economy in Poland Based on Household Expenditures and Incomes

Authors

DOI:

https://doi.org/10.24425/cejeme.2023.144997

Keywords:

underground economy, underreporting of income, income elasticity, food consumption, self-employed households

Abstract

We estimate the size of income underreporting in Poland by following and
extending the consumption method of Pissarides and Weber (1989). Our study
shows that underreporting of income occurs among households with income
from self-employment. We do not find any significant underreporting activity
by the employees working in the private sector. The main findings indicate
that roughly one-fourth of the total income of self-employed households is not
reported in Poland. This share varies between 20 to 30 percent from 2005 to
2017 with a decreasing trend.

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Published

2022-11-18

How to Cite

Turgut, M. B., & Tratkiewicz, T. (2022). Estimate of the Underground Economy in Poland Based on Household Expenditures and Incomes. Central European Journal of Economic Modelling and Econometrics, 15(1), 1–29. https://doi.org/10.24425/cejeme.2023.144997