Recent Trends of Informality in Greece: Evidence from Subnational Data
Selected Issues Papers, February 20, 2024
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- Recent Trends of Informality in Greece: Evidence from Subnational Data
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Bibliographic details
- Authors: Larry Q Cui, Jiaxiong Yao
- Published: February 20, 2024
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400267741.018
Overview
- Authors: Larry Q Cui, Jiaxiong Yao
- Date: February 20, 2024
- Paper explores the evolution of informality in Greece as a major structural impediment to fiscal capacity and sustainable growth.
- Main analytic focus: subnational data evidence on informality trends and drivers, and links between informality, per capita GDP growth, and tax revenue.
Key Findings
- Informality has dropped significantly in Greece in recent years.
- There were temporary increases in informality during the sovereign debt crisis and the COVID-19 pandemic.
- Lower informality is associated with:
- Higher subsequent per capita GDP growth.
- Higher tax revenue.
- Greece’s significant recent progress in digitalization appears to have helped reduce informality.
Policy Implications and Recommendations
- There remains scope to further reduce informality by:
- Accelerating digitalization.
- Continuing and deepening ongoing pro-growth structural reforms.
Subjects and Keywords
- Subject: Digitalization, Economic sectors, Informal economy, International organization, Labor, Monetary policy, Public employment, Revenue administration, Tax evasion, Technology
- Keywords: Digitalization, evolution of Informality, Greece, Informal economy, informality, informality trend, MIMIC model, Public employment, subnational, Subnational data, Tax evasion, tax revenue loss, trends of Informality
Source: Recent Trends of Informality in Greece: Evidence from Subnational Data, Larry Q Cui and Jiaxiong Yao, February 20, 2024.
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- Recent Trends of Informality in Greece – Evidence from Subnational Data