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Policy brief External publication

Tackling Undeclared Work in Bulgaria: Knowledge-Informed Policy Responses

GREY Policy Brief No. 1

Written by

The policy brief shows that participation in undeclared work is widespread in Bulgaria. The undeclared economy is estimated at roughly a third of GDP, thus presenting a serious challenge to the country’s fiscal performance. Nearly one in ten people do some undeclared work. Bulgarians see undeclared work as deeply ingrained in their society. Undeclared work is motivated primarily by lack of trust between the people and the authorities. It involves mostly people, who voluntarily exit the declared economy, but also those that are excluded. For every exclusion-driven worker in Bulgaria, there are 5 exit-driven. In conclusion, the policy brief notes that the lion’s share of policies utilized in Bulgaria are aimed at repressing undeclared work. However, these should be complemented with more curative, preventative and commitment policies, such as the social-actor approach.

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