On 02.06.2023 the Social Survey Research Center and the Institute of Philosophy and Sociology of BAS held a national conference on “Factor Determination of the “Shadow Economy” in the Perceptions of Bulgarian Society: Empirical Study, Results, Interpretations and Policy Recommendations”. The Forum was held under a project funded by the Bulgarian National Science Fund. The study is a fundamental research project which presented the results and analytical products of the research carried out in the period 2020-2023.
Participants’ reports presented different aspects of the “shadow economy”. A Shadow Economy Tolerance Index (SETI) was calculated for the first time in Bulgaria. This index gives an idea of the relative share of “shadow practices” in Bulgaria and was specifically designed for the purpose of the project. There is no such index in Europe. It is based on the measurement of public sentiments and attitudes that determine people’s susceptibility to engage in shadow practices. It is not measured in percentages but in numbers from 1 to 100. The survey shows that people were willing and participated in such practices in 2021. For the average age the index has a value of 72, for people over 56 this index is 54, for the young the value rises to 91.
The project examines the causes of the “shadow economy” which are multifactorial, but the main cause is the underdeveloped economy. According to the survey data, the most common practice in 2021 is to have a legal employment contract but to have the employer hand over an extra amount. In terms of companies, the most common practice is income concealment.
Corruption and the psychological propensity to give and accept bribes were two other themes presented at the conference. At the end of the forum, recommendations were made for effective policies and the introduction of adequate measures to reduce the “shadow economy”.
