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Cover EEO Final ISSN 1725-5376 European Employment Observatory Review: Spring 2007 EUROPEAN COMMISSION Romania: Cătălin Ghinăraru Hungary: Tibor Bors Borbély, Egbert Holthuis (DG EMPL D/2) National Labour Research Institute Ministry of Employment and Labour Susana Pratt (DG EMPL D/2) Bucharest Oliver Demkó, Public Employment Slovenia: Miroljub Ignjatović Service SYSDEM Network University of Ljubljana Malta: Edwin Camilleri, Ministry of Belgium: Luc Sels Ljubljana Education, Youth and Employment Steunpunt Werk en Sociale Economie, Slovakia: Luboš Vagač Netherlands: Martin Blomsma, Ministerie K.U. Leuven Center for Economic Development van Sociale Zaken en Werkgelegenheid Leuven Bratislava Theo Keulen, Central Organisation for Bulgaria: Pobeda Loukanova Finland: Hannu Kaseva Work and Income Bulgarian Academy of Sciences The Research Institute of the Finnish Austria: Tanja Jandl, Ministry of Economy Sofi a Economy (ETLA) Czech Republic: Daniel Münich Helsinki and Labour CERGE-EI Sweden: Dominique Anxo Gudrun Nachtschatt, Arbeitsmarktservice Prague CELMS - Centre for European Labour Österreich Denmark: Per Kongshøj Madsen Market Studies Poland: Beata Chromińska, Ministry CARMA, Aalborg University Gothenburg of Economy, Labour and Social Policy Aalborg United Kingdom: Eleanor Breen Marcin Dygoń, Voivodship Labour Offi ce Germany: Kurt Vogler Ludwig Breen and Partners in Rzeszów ECONOMIX Research & Consulting London Portugal: Pedro Bogalho, Ministerio Munich Croatia: Predrag Bejaković do Trabalho e da Solidariedade Estonia: Reelika Leetmaa Institute of Public Finance Angela Costa, Employment and PRAXIS Center for Policy Studies Zagreb Vocational Training Institute Tallinn Turkey: Hakan Ercan Romania: Cristina Mereuta, Ireland: Jerry Sexton Middle East Technical University Employment Department (MLSS) Dublin Ankara Sonia Diaconescu, National Employment Greece: Dimitris Karantinos Norway: Knut Larsen Agency National Centre of Social Research ECON Analyse AS Slovenia: Damjana Kosir, Athens Oslo Employment Service of Slovenia Spain: Elvira González Gago Centro de Estudios Económicos MISEP Network Slovakia: Roman Brunovsky, Tomillo, S.L. Belgium: Joseph Remy, Ministry of Labour, Social Affairs and Madrid Ministère de l’Emploi et du Travail Family of the Slovak Republic France: Sandrine Gineste Bulgaria: Todor Krastev, Finland: Marja-Riitta Pihlman / Marjukka Bernard Brunhes Consultants Ministry of Labour and Social Policy Piiparinen, Ministry of Labour Paris Boyka Gyosheva, Employment Agency Sweden: Pontus Ringborg, Italy: Giuseppe Ciccarone Czech Republic: Miloš Tichý / Stanislav Ministry of Industry, Employment Fondazione G. Brodolini Beneš, Ministry of Labour and Social and Communications Rome Affairs Bengt Härshammar, Swedish National Cyprus: Louis N. Christofi des Denmark: Leif Christian Hansen / Tayyiba Labour Market Board (AMS) University of Cyprus Ahmad, National Labour Market United Kingdom: Peter Sydserff, Nicosia Authority Jobcentre Plus Latvia: Alfreds Vanags Germany: Arnold Hemmann, Baltic International Centre for Economic Bundesministerium für Arbeit und Croatia: Marina Gašpar-Lukić, Policy Studies Soziales Ministry of Labour and Entrepreneurship Riga Kurt Berlinger, Bundesagentur für Arbeit Turkey: Ali Ercan Su, Lithuania: Boguslavas Gruževskis Estonia: Nele Labi / Ülle Marksoo, Ministry of Labour and Social Security Institute of Labour and Social Research Ministry of Social Affairs Vilniaus Ireland: Marie Dempsey, Department of Berrin Karabüber, Turkish Employment Luxembourg: Roland Maas Enterprise, Trade and Employment Organisation CEPS / INSTEAD Kevin Quinn, FÁS Iceland: Frank Fridriksson, Differdange Greece: Eirini Kalavrou, Directorate of Labour Hungary: Almos Telegdy Ministry of Labour Norway: Ola Ribe, Ministry of Labour CEU - Central European University / Kleoniki Fotiadou, OAED and Government Administration Institute of Economics of the Hungarian Spain: Elvira Gonzalez Santamarta / Academy of Sciences Marina Garcia Lopez, EEO NETWORK SERVICES Budapest Ministero de Trabajo y Asuntos Sociales GHK Consulting Limited Malta: Manwel Debono France: Caroline Méchin, DGEFP, 30 St Paul’s Square Centre for Labour Studies, University of Département synthèses, Birmingham B3 1QZ, United Kingdom Malta Ministère de l’emploi Msida Italy: Antonella Buonopane / Alfredo Tel: +44 121 233 8900 Netherlands: Joop Schippers Ferrante, Ministero del lavoro Fax: +44 121 212 0308 VanDoorneHuiskes en Partners Cyprus: Eleni Kalava, E-mail: [email protected] Utrecht Ministry of Labour and Social Insurance Austria: Ferdinand Lechner Savvas Procopides, Human Resource Director: Gill Whitting Lechner, Reiter & Riesenfelder OEG Development Agency Vienna Latvia: Imants Lipskis, Manager: Caroline Lambert Poland: Elżbieta Kryńska Ministry of Welfare, Labour Department Editors: Inga Pavlovaite, Łukasz IPiSS - Institute of Labour and Social Grieta Tentere, State Employment Service Sienkiewicz, Roger Sumpton, Tina Weber Studies Lithuania: Rasa Malaiškienė, Warsaw Ministry of Social Security and Labour This publication is based on articles Portugal: Reinhard Naumann Inga Buckaite, National Labour Exchange provided by the SYSDEM correspondents. DINAMIA Luxembourg: Jean Hoffmann, National articles are the sole Lisbon Administration de l’Emploi responsibility of the author(s). European Employment Observatory Review: Spring 2007 European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities Unit D2 Manuscript completed in September 2007 Neither the European Commission nor any person acting on behalf of the Commission may be held responsible for the use that may be made of the information contained in this publication. Refer to EEO website to access full national articles: www.eu-employment-observatory.net/ 1: © Gettyimages 2: © Reportdigital.co.uk 3: © Reportdigital.co.uk 4: © Reportdigital.co.uk Europe Direct is a service to help you fi nd answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu). Cataloguing data can be found at the end of this publication. Luxembourg: Offi ce for Offi cial Publications of the European Communities, 2007 ISSN 1725-5376 © European Communities, 2007 Reproduction is authorised provided the source is acknowledged. Printed in Belgium Printed on white chlorine-free paper CONTENTS 1. INTRODUCTION AND BACKGROUND ................................................................................................................................................. 5 2. THE PREVALENCE OF UNDECLARED WORK .................................................................................................................................... 6 3. THE IMPACT OF MINIMUM WAGES ................................................................................................................................................... 8 4. THE IMPACT OF THE TAXATION AND SOCIAL SECURITY REGIMES .......................................................................................... 10 5. MEASURES AIMED AT TACKLING UNDECLARED WORK .............................................................................................................. 13 6. CONCLUSIONS ........................................................................................................................................................................................ 17 TABLES 3 Table 1: Changes in the prevalence of undeclared work, since 2004 ......................................................................................... 7 Table 2: Countries in which the minimum wage has an impact on the prevalence of undeclared work ......................... 8 Table 3: Countries in which the statutory minimum wage has no impact, or for which there is no evidence ............. 9 Table 4: Summary of the impact of the taxation and social security regimes in each country ........................................ 10 Table 5: Measures aimed at tackling undeclared work .................................................................................................................... 14 ANNEX 1: PROBLEMS OF ESTIMATING AND MEASURING UNDECLARED WORK ....................................................................... 18 BIBLIOGRAPHY ............................................................................................................................................................................................... 19 APPENDIX: SUMMARY OF NATIONAL ARTICLES PRODUCED BY SYSDEM EXPERTS, SPRING 2007.......................................................... 30 OVERVIEW OF SYSDEM EXPERTS’ NATIONAL UPDATE ARTICLES ON UNDECLARED WORK IN THE EUROPEAN UNION SUBMITTED MAY 2007 jective of Improving the Adaptability of Workers and En- 1. INTRODUCTION terprises (Council Decision of 12 July 2005 on Guidelines for the employment for the Member States): AND BACKGROUND Europe needs to improve its capacity to anticipate, trig- ger and absorb economic and social change. This requires This Review provides an update, for the EU-27, to the employment-friendly labour costs, modern forms of work report on undeclared work that was published in the EEO organisation and well-functioning labour markets allow- Review: Autumn 2004 ing more fl exibility combined with employment security to www.eu-employment-observatory.net/en/reviews
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