Designing Survey Methods to Evaluate the Undeclared Economy: A Review of the Options

Abstract

This Working Paper is part of the GREY project which is developing capacities and capabilities in tackling undeclared work. In this Working Paper, the various options available to researchers when designing surveys to tackle undeclared work are evaluated. These issues include the unit of analysis used, the data collection methodology, an array of questionnaire design issues (including the reference period, whether to define the phenomenon for participants, a direct versus gradual approach to sensitive issues, whether to do a supply- and/or demand-side survey; whether to examine the relationship between purchasers and sellers, how to discourage social desirability bias), sample size, sampled populations and sampling method.

Keywords: informal sector, research methods, shadow economy, survey design, informal economy, tax evasion

JEL Classification: C42, H26, K42