In recent decades scholars have acknowledged that transactions in the informal economy have not vanished with modernization and industrialization as expected but rather remain an important contemporary aspect of overall production and consumption across the world, in both developing and developed countries. Yet little is known about the profile of the consumers in this realm or what drives them to purchase from the informal economy. A systematic review of the literature investigating consumption in the informal economy reveals a severely underdeveloped (...) area of consumer studies with significant gaps in terms of its theoretical approaches, methods and regional coverage. The findings of the existing literature is that multiple motives are used by consumers for justifying their purchases in the informal economy beyond the dominant simplistic view that they do simply for financial gain or for a lower price. The outcome is a recognition that responsibility to reducing this phenomenon with negative effects on governments, businesses, workers and consumers lies not just with public authorities but also practitioners who need to correct the failures in formal market provision. The significant gaps identified in the literature are then used to highlight a comprehensive future research agenda, which includes the need for the development of an institutionalist theoretical perspective when explaining consumers‘ participation in the informal economy and social marketing interventions. (shrink)

The aim of this paper is to evaluate the extent of the practice of using informal payments for accessing the services of public clinics or hospitals across Europe and to explain the prevalence of this corrupt practice using the framework of institutional theory. To achieve this, a multi-level mixed-effect logistic regression on 25,744 interviews undertaken in 2020 with patients across 27 European Union countries is conducted. The finding is that the practice of making informal payments remains a prevalent practice, although (...) there are large disparities in the usage of this practice in different European countries. However, informal payments by patients are more likely when there is a lower institutional trust and a higher degree of asymmetry between formal and informal institutions. The resultant proposal is that policy makers need to address the institutional environment to tackle such informal payments. How this can be achieved is outlined. (shrink)

The aim of this paper is to evaluate the prevalence in the 27 member states of the European Union of a little discussed illicit wage arrangement in which formal employees are paid two wages by their formal employers – an official declared salary and an additional undeclared wage, thus allowing employers to evade their full social insurance and tax liabilities. Reporting the results of a 2007 Eurobarometer survey involving 26,659 face-to-face interviews, the finding is that one in 18 formal employees (...) received such an envelope wage from their formal employer and that envelope wage payments are more prevalent in member states with lower (rather than higher) levels of state intervention. The tentative conclusion is that illicit envelope wage payments are a product of under-regulation, rather than over-regulation, and that further research is now required to test the validity analysis of this thesis in other global regions. (shrink)

The aim of this paper is to evaluate the prevalence in the 27 member states of the European Union of a little discussed illicit wage arrangement in which formal employees are paid two wages by their formal employers – an official declared salary and an additional undeclared wage, thus allowing employers to evade their full social insurance and tax liabilities. Reporting the results of a 2007 Eurobarometer survey involving 26,659 face‐to‐face interviews, the finding is that one in 18 formal employees (...) received such an envelope wage from their formal employer and that envelope wage payments are more prevalent in member states with lower (rather than higher) levels of state intervention. The tentative conclusion is that illicit envelope wage payments are a product of under‐regulation, rather than over‐regulation, and that further research is now required to test the validity analysis of this thesis in other global regions. (shrink)