Does higher cash-in-hand income motivate young people to engage in under-declared employment? Cover Image

Does higher cash-in-hand income motivate young people to engage in under-declared employment?
Does higher cash-in-hand income motivate young people to engage in under-declared employment?

Author(s): Ioana Alexandra Horodnic, Colin C. Williams, Rodica Ianole
Subject(s): Economy, National Economy, Socio-Economic Research
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: under-declared employment; under-declared wages; envelope wages; undeclared work; financial motivation;

Summary/Abstract: The aim of this paper is to analyse financial gains as a motive for engaging in under-declared employment (choosing envelope wages) amongst youth population. A youth profile of those more likely to choose envelope wages for financial gains is proposed, based on socio-demographic characteristics. Reporting on a survey amongst 1,059 students and employing logistic regression analysis, the finding is that unmarried undergraduate students with a difficult financial situation are more likely to choose envelope wages for a higher cash-in-hand income. Various theoretical explanations and motivations for engaging in such noncompliant behaviour are then explored to test their validity for the youth population.

  • Issue Year: 11/2020
  • Issue No: 2
  • Page Range: 48-69
  • Page Count: 22
  • Language: English
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