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An Analysis of Undeclared Work: An In-Depth Study of Specific Items

In the autumn of 2003 LFMI, among institutions from other European countries, participated in a project “An Analysis of Undeclared Work: An In-Depth Study of Specific Items,” financed by Inregia AB, Sweden, and in co-operation with Regioplan, the Netherlands.

The goal of the project was to write framework country-studies into the informal economy. LFMI conducted a study on Lithuania by analysing the following themes: (1) the description of the informal economy in Lithuania; (2) the characteristics of undeclared work and informal activity in Lithuania; (3) the factors that can explain the existence of, and the development in, the informal economy; (4) the gender dimension of undeclared work; (5) the methods used to measure the size (money and labour); (6) the existing estimates of the size of undeclared work in Lithuania (in money and in labour years) and which of them are considered most reliable and why; (7) the extent to which the undeclared/underground labour can be transferred to formal declared labour within Lithuania; (8) the extent to which undeclared/underground labour is covered by standard labour force surveys and other employment surveys in Lithuania; (9) policy (mix) developed to transform undeclared work to regular employment; (10) are these policies successful and what is the success factor; (11) policy (mix) that turned out to be unsuccessful.

Country-studies have been presented in a report “Undeclared work in an enlarged Union” by Inregia AB and Regioplan BV which was commissioned by the European Commission General Directorate for Employment and Social Affairs. The report contains a description and analysis of undeclared work in the EU15 Member States, the new Member States and the candidate countries (Bulgaria and Romania). The principle objective of the research was to clarify definitions, measurement methods, estimated sizes, good practices and the gender dimension of undeclared work.

The European Commission presented the study “Undeclared work in an enlarged Union” at a press briefing on July 2, 2004 in Brussels.

  • Press release by the EC "Undeclared work: Commission unveils new study with EU-wide data" (July 2, 2004).
  • EC’ study "Undeclared work in an enlarged Union" (1,3 MB)
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