EUROPEAN HEALTHCARE FRAUD AND CORRUPTION NETWORK - Fraus omnia corrumpit -

1Krakow, EHFCN, 6 October 2011

Fraud in social security across the European Union: measuring the hidden society

Prof. Dr. Jozef PacoletFrederic De WispelaereHIVA Research Institute for Work and SocietyCatholic University Leuven

12

Fiscal and social evasion and avoidance: definition and size State of the welfare state: growing interest for control improper use Fraud as a threat of the welfare state Definition and measurement problems Measurement or measurement of opinions Size of underground economy in surveys, national accounts or models System of health accounts Some country evidence Conclusions

Content23Fiscal and social evasion and avoidance: need for a large definitionFiscal underratingFlat-rate for specificoccupationsFlat-rate for specific occupationsAvoidanceIncome not declaredUndeclared work Benefit fraud and improper useCriminal and illegal activitiesSocial benefitsSocial contributionsFiscal contributionsEvasion Form Moving tax basis Spread over time Form Moving tax basis Spread over timeLegally not or less taxed becauseGrey areGrey areaMovable propertyRateable value own houseSavings accountExemption or subsidyDomestic help, service vouchersDomestic help, fiscal amnestyCan not tax entirelyDont want to tax entirelyThe state of the welfare state: growing interestfor control improper use4Is a five-yearly project of monitoring the evolution of the welfare state in the EU (since 1992) (welfare state trend watching) 1992-1997-2002-2007Since the mid 90s growing interest for improper use and controlMistrust in misuse of social protection, discouraging nature of unemployment benefits (workfare, not welfare) versus active welfare state, reintegration for those receiving benefits as invalidity, social assistance, improper design (poverty traps)Measures: reorganisations proposed or operational, as greater accountability of organisations and clients, strategies to reduce entitlement (cost containment , but success is limited: hypothesis benefit fraud and misuse overestimated, certainly in comparison with contribution fraud)Since 1997 European employment strategy and since then several European initiatives to transform informal labour in formal activities (fight against undeclared work)

The state of the welfare state

519921997AB-control of supply health care (control physicians prescription behaviour) and higher co-insurance-enhancing financial responsibility health insurance organisations-in recent modernisation plan of social security (1996), special attention for social fraud-Continued attention for social fraudD-poor must earn their minimum (work duty, punishment reduction benefit)-discussion abuse benefits (unemployment, sickness)-all unemployed must after a certain period participate in activation (work or solicitation)DK-benefits must be earnedE-Cost-containign measures.-Transfer of responsabilities to local budget surveys.-Public hospitals to be converted into non-profit, independent public institutions.F-increased control of supply of health care (control physicians prescription behaviour) and higher co-insuranceIncreasing control on provision of health careG-Large underground-economy expected, and also large informal sector in the care systemIenhancing financial responsability of regions (1992-1999)increases the powers of the central government and the regions in determining qualitative service standards and quality controls (1999)IRLLNL-sickness and disability insurance criticised because social partners use programmes improperly to facilitate restructuring of the economy and also of lax (too lenient) procedures to establish entitlements-large public debate on (overestimated) social fraudprivatisation of sickness insurance and limits on entitlement to unemployment and disability benefitssanctions for non-compliance with formal rules have been tightened PSSFUK-early interest for social fraud (close down the something for nothing society)-recent plan to stimulate informers on fraud (beat-a-cheat)-Welfare to work programmes involve coersion. -Control over the subscription of expensive drugsSource: Pacolet, The state of the welfare stateThe state of the welfare state

6Source: Pacolet, The state of the welfare state2002ABDDeControl every third month of all people recieving a temporary social benefit e.g. social assistance benefit, unemployment benefit or sickness benefitEFGIMore severe controls over invalidity pension claimants and beneficiaries have been introducedIRLLNLPMinimum income program requires disclosure of bank statement in addition to information on recent earnings;More monitoring and more workfare;Introduction of vouchers in minimum income program (revoked in 2005)SSF- was discussed largely in the 1990es, less in the 2000esUKCZHUworking age beneficiaries of regular social assistance must engage in public workincreased financial control on medical treatmenthealth care fraud came to the political agendaPLSKEELVLTMTCYSISocial fraud a threat for the welfare state

7Contribution fraud and fiscal fraud undermines the financing of the welfare stateReduces the social protection of the populationBenefit fraud undermines the credibility of the welfare state and its political defenceOur conclusion was that it would/could even undermine the state itself (thin borderline between evasion, fraud, criminal activities European Union disliked this criminalisation of informal activities)Lack of ambition for proper measurement (conference in 2003, just after that Greece entered the Euro-zone in 2001, reveals this statistical imbroglio) Size of undeclared work and benefit fraudHuge problems of definitions and measurementCould be based on national accounts (OECD, UN,EU, National authorities), macro-economic measurement (cfr. Fr. Schneider), and surveys, administrative information Use of existing structural surveys as labour force survey, household budget: huge problemsSurveys on macro-level, population, professionals: hardly used and methodological problems We favour administrative information: basis of control and assessment of entitlement, data-mining and reportingCould be source of macro-economic measurement

8Conclusions of this statistical imbroglioUndeclared activities is not identical with fraudDistinction between tax and benefit fraudActivities can be integrated in national accounts but taxes can be avoidedBenefits can be paid, but inappropriateBenefit fraud is comparable with contribution fraud :Definition problems or boundariesDifferent modalitiesNot visible and measurableSame methodologies9

Some illustration of the difference in definition and the need of reconciliation: based on Eurobarometer SurveySource: Eurobarometer, 2007 1010

Some illustration of the difference in definition and the need of reconciliation: based on Eurobarometer SurveySource: Eurobarometer, 2007 1111

Some illustration of the difference in definition and the need of reconciliation: based on Eurobarometer SurveySource: Eurobarometer, 2007 1212

Some illustration of the difference in definition and the need of reconciliation: based on Eurobarometer SurveySource: Eurobarometer, 2007 1313

Some illustration of the difference in definition and the need of reconciliation: based on Eurobarometer SurveySource: Eurobarometer, 2007 1414

Some illustration of the difference in definition and the need of reconciliation: based on Eurobarometer SurveySource: Eurobarometer, 2007 1515

Some illustration of the difference in definition and the need of reconciliation: based on national accountsSource: Eurobarometer, 2007; UNECE 161617Macro-economic estimates of underground economy

Source: F. Schneider, University of Linz18Health care as part of the informal sector The concealed production of health services (to avoid the payment of income or other taxes or to achieve hidden additional income besides that under contract with health insurance and/or government programmes) may amount to a sizeable share of the real medical benefits accruing to private households. It may also be the case that such non-declared payments may be made to health care providers on top of their official revenues for reported health services. In both cases, an estimate of the amounts should be part of total current expenditure on health as defined by SHA, as differences in the treatment of the informal health care sector can distort international comparisons. Illegal actions should in principle be recorded in the accounts in the same way as legal actions, if they fall within the health care boundary Source: OECD, Eurostat, WHO, A System of health accounts, 2.0Measurement of undeclared work in health accounts19Source: OECD, Eurostat, WHO, A System of health accounts, 2.0Another aspect to be considered in the consumption of health care is the non-observed economy i.e. unrecorded, illegal or informal activities that are not always captured or reported in regular statistical sources. The reason may be that the activity is informal and thus escapes the attention of official surveys; it may be that the producer is anxious to conceal a legal activity, or it may be that the activity itself is illegal. In some countries the consumption of health care goods and services is often related to informal payments, so called envelope payments or under the table payments. Whether these payments relate to normal or additional services provided to patients or represent a patients additional gratitude to the physician, these extra unrecorded payments increase the incomes of health care providers on one side and cause the financial burdens of the consumer on the other side. The non-observed health economy may account for a significant part of the health care system for some countries. It is therefore particularly important to try to make estimates of the total consumption of health care, even if it cannot always be separately identified as such. Measurement of undeclared work in health accounts20De facto, the cost sharing would include informal payments. However, usually informal or under the table payments are not seen as cost sharing but as genuine out of pocket payments.Source: OECD, Eurostat, WHO, A System of health accounts, 2.0Measurement of undeclared work in health accountsConclusion on SHA System of health accountsFigures remain undisclosed, but should be includedSame goes for national accountsAnd it is a point of concern for health insurance and fiscal administrationFor statistical consistency but perhaps also for better compliance: have a regular (yearly meeting) of those even statistical instances on the evidence available and hypothesis used21Can the dimensions/ determinants of fraud help us?Tax morale, cultureBenefit:tax and contributions level; red tape Cost: audit probability, punishment, penalty rate222223

Attitude towards fraud (0= absolutely unacceptable, 10 = absolutely acceptable) Source: Eurobarometer, 200724Relation between population attitude towards fraud and macro perception of corruption

Source: European Social Survey, Eurobarometer and Transparancy international

25

Opinion on social fraud and perception of corruptionSource: European Social Survey and Transparancy international26

Opinion on social fraud and perception of corruptionSource: European Social Survey and Transparancy international27

Opinion on social fraud and perception of corruptionSource: European Social Survey and Transparancy international28

Opinion on efficiency of the state and perception of corruptionSource: European Social Survey and Transparancy internationalNational accounts give some information on fraud in health care sectorCase of BelgiumOther countries: United Nations Economic Commission for Europe, Non-Observed Economy in National Accounts, 200829National accounts revealing fraud in health care: example of BelgiumCorrectionsTotal amount (corrections incl.)Correction as % of total amountTurnover (70)Gross added valueWages (62)Gross operating surplusTurnover (70)Gross added valueWages (62)Gross operating surplusTurnover (70)Gross added valueWages (62)Gross operating surplusMining00007780268546122330000Fishin00001456834350000Mining and quarrying00006913161441520000Manufacturing782393513421636604275028350139330,50,90,22,5Electricity, gas and water supply000090835823213735910000Construction80022746535221037245119386881498021,523,07,844,4Wholesale and retail trade, repair of motor vehicles9267249220822846261631535174251368314,87,91,216,7Hotels and restaurants140963647589102934093,12206175613,715,52,133,5Transport, storage and communication3823012527542763200091217278090,91,50,23,5Financial intermediation00002774814309831257160000Real estate, renting and business activities245623141072207748265407215692360793,34,30,76,1Public administration0000121318226166640000Eduction6505959163991528511140,6000,4Health and social work9619261591126255169341241152003,75,50,117,5Other community, social and personal service activities4503012327910 4495 6213 5172 1534,35,40,713,030Detected benefit fraud in Belgium: claims for repayment (around 2008, administrative sources)31 DefinitionAmount (million euro) RVA National employment officeUnemployment benefits to repay69,8RIZIV Health insuranceSickness benefit to be repaid12,2 (0.5% of total )RIZIV Health insuranceHealth care0,5RVP National Office for PensionsPensions wrongfully paid17,9RKW National Employees Family AllowancesFraud with fictive companies1,3Total101,7Source: own calculations on reports RVA, RIZIV, RVPResults of the fight against fiscal andsocial fraud in Belgium in perspective (in million or %)

SourceNBB, Jaarverslag2009, p.235; Pacolet, Perelman, Pestieau, Baeyens & De Wispelaere (2009); Pacolet, Strengs, 2010.32Sociale contributions (total amount) (NSSO) (2008)49062Average recovered amount of social contributions between 1998 and 2003140as (theoretical) % of the total volume between 1998 and 2003 average recovered from employees0,28%Total tax receipts (2008)101704Identified surtax by inspections (2006)2462 to 3785 as (theoretical) % of the total volume (2006)2,4% to 3,7%Total social benefits (2008)44698Identified social benefit fraud (2008)102 as (theoretical) % of the total volume (2008)0,22%Total social contribution and benefit fraud (2008)38732Failures under the form of wrong or late diagnoses, wrong treatment, lack prevention, communication (medical malpractice), Is a threat for public health and implies costThree levels of regulation for physiciansOrde van geneesheren National council of the order of physicians (created in 1938): self regulationProvincial medical commissions (created in 1818): public role of licencing Dienst geneeskundige controle RIZIV (Department medical control Health insurance, created in 1963): more managerial, financial and administrative control of reality, conformity and since 1989 control on overconsumption

Source: R. Schepers, Artsen in gebreke, 2008Other failures of medical profession: example of Belgium33ConclusionsRemains to a large extend closed shops: lack op transparency, especially in the Provincial medical commissionsIn Department medical control RIZIV: data are available but no informationFor us : it is a good starting point: let data tell their storySome examples of malpracticeservices not rendered, other types of services billed, irregularities in the real presence, use of false document, sometimes in collusion with other practitioners, overconsumption

Source: R. Schepers, Artsen in gebreke, 2008Other failures of medical profession: example of Belgium34Other failures of medical profession: example of BelgiumControlPreventive: concerns irregularities that are admitted, but there is no fraud or fault: leads to correction, and yes or no even recuperationRepressive: when non admitted fault of fraud is occurring: leads to further enquiry and penalisationSome numbers for the physicians for the period 1990-2000Total number of irregularities in period 1990-2000: 277 740 irregularitiesSome numbers of recovered spending:Preventive measures: 13.8 million in period 1990-2000Sanction of prohibition of reimbursement: 2.8 million in period 1990-2000Sanctions on overconsumption: 1.7 million in period 1994-2000 of which 0.9 million repaid.Voluntary repayments total health care 2010: 4,6 million. Other forced repayments 2010: 3 million.Total public spending on health insurance in 2009 some 27.7 billion

Source: R. Schepers, Artsen in gebreke, 2008 and Assuralia, 201135Fraud and error in the benefit system, Department for work and Pensions, UKFraud, error customer, official errorOverpayment and underpaymentEstimated via sampling and surveys, on yearly basisIn total in 2010/11 on total budget of 153bn 2.1% overpayment (0.8% fraud, 0.8 customer error, 0.5% official error) and 0.8% underpayment (0% fraud, 0.6% customer error and 0.3% official error)Overpayment is some 2.1% of total expenditure of 10% of GDP, or 0.2% of GDPSource: DWP Department for Work and Pensions, Directorate Fraud and Error Measurement3637Survey results undeclared work by social benefit recipients in the NetherlandsCBS (Statistics Netherlands) has experience in measuring the amount of contribution fraud by face-to-face and websurveysIn cooperation with the SZW (Ministry of Social Affairs and Employment) for the social benefit recipients 200920082007Gross sampleResponsGross sampleResponsGross sampleResponsSZW5000010%4000018%1500018%Source: I. Dzambo (CBS), presented at SUBLEC conference, 2 June 2010, Brussels38ResultsUndeclared workers % (weighted)2007Undeclared workers % (weighted)2008Population (CBS)9,48,6Total benefit receivers SZW3,43,0- WAO (incapacity)5,94,0 AOW (pension)1,32,2 WW (unemployment)5,35,6 WWB (social support)4,63,0Survey results undeclared work by social benefit recipients in the NetherlandsSource: I. Dzambo (CBS), presented at SUBLEC conference, 2 June 2010, BrusselsBenefit fraud: marginal or substantial?Federal health care programs, including Medicare and Medicaid, are under attack by dishonest people who lie to the government and exploit its programs to steal taxpayers money. The full extent of health care fraud cannot be measured precisely. However, the Federal Bureau of Investigation (FBI) estimates that fraudulent billings to public and private health care programs are 3-10 percent of total health spending, or $75-$250 billion in fiscal year 2009....an additional $311 million in two-year funding to further strengthen the antifraud efforts- a 50 percent increase...the antifraud efforts in the budget are estimated to save up to $2.7 billion in Medicare and Medicaid spending

Source: L.Morris (chief counsel, Office of Inspector General US. Department of Health and Human Services, Health Affairs, 200939Conclusions40Benefit fraud is comparable with contribution fraud and fiscal fraudDefinition problems or boundaries: by preference exhaustiveHuge number of different modes of fraud, error, malpractice, overconsumption, avoidanceGrowing awareness of problem and willingness to tackle it. Not visible and measurable: how to measure the hidden society?Different methodologiesBenefit fraud seems to be less important than contribution fraud and fiscal fraudBut perhaps we are underestimating also the benefit fraud

41Its time to acknowledge how little we really know about unobserved economy despite forty years of effort to measure their size and growth. (Feige & Urban, 2008)The more people know about fraud, the more they discuss it, and the better society can fight it. (OLAF, 2005; 2006)

Chart116.1927.8886.095.7975.3244.4032.482.161.8881.7571.6881.1450.9350.8640.7560.690.6280.540.5160.4320.4110.370.2430.2330.2220.20.1120.1110.050.013

Envelope wagesTotal % of envelope wages

Undeclared activitiesUndeclared workTotal answersYes1,00718%1,01015%1,00113%1,00411%1,00110%1,0097%1,0247%1,0007%1,0177%1,0406%1,0396%1,0756%1,0005%26,6595%5105%1,0005%1,0375%1,0004%1,0264%1,0034%1,0044%1,5103%1,0033%1,0073%1,0173%1,0023%5072%5002%UK1,3132%5031%How many weeks?Total answersAverage/person829.3324.526225020.615216.82616.13515.92814.56813.44912.93512.76711.82311.56010.91,18510.56610.11339.91099.6679.1418.7628.6278.3687.6397.61006.2485.91785.8284.9104.7453How many hours?Total answersAverage/weekAverage/yearNormal paid working hoursAs % of normal paid working hoursBG5031.5649171037.95IT2625.5561171032.81LV15223.2390171022.79EL3529.6376171021.98MT812.4363171021.25PL4927.8359171020.97LT6825.9347171020.30PT2619.9320171018.74HU6725.1296171017.32ES2819276171016.11RO4130.6266171015.57IE3515.9253171014.78CY38.9218171012.75EU271,18518.9198171011.61SK6223198171011.57LU2316.3187171010.96EE10919182171010.67FR6718.316717109.74BE6014.515817109.24CZ6820.615717109.16AT6611.211317106.62D-W2712.310217105.97NL13310.110017105.85SI4816.49717105.66DE3912.59517105.56UK2816.58117104.73SE10012.67817104.57DK17811.86817104.00D-E1013.76417103.77FI4517.15117103.00Size %LV3.4BG1.9LT1.4HU1.2EE1.2PL1.0IT1.0EL0.9NL0.8DK0.7SK0.7CZ0.6RO0.6IE0.6FR0.6EU270.6PT0.6BE0.6LU0.5ES0.5AT0.5SE0.5MT0.4SI0.3D-W0.2DE0.2CY0.1FI0.1UK0.1D-E0.1Envelope wagesTotalYesAverage percentage of incomeTotal % of envelope wagesRO1,0040.2370.416.192LV1,0100.1746.47.888BG1,0000.1443.56.09PL1,0000.1152.75.797LT1,0170.1148.45.324IT1,0170.0762.94.403EE1,0040.08312.48EU2726,6590.0543.22.16HU1,0000.0823.61.888SK1,0750.0725.11.757PT1,0020.0442.21.688SI1,0370.0522.91.145ES1,0070.0518.70.935BE1,0400.0614.40.864AT1,0090.0418.90.756EL1,0000.03230.69D-E5070.0231.40.628FR1,0390.01540.54IE1,0030.0225.80.516CY5030.0410.80.432CZ1,0240.0313.70.411NL1,0010.0218.50.37FI1,0260.038.10.243DE1,5100.0123.30.233SE1,0010.037.40.222MT5000.01200.2DK1,0070.025.60.112LU5100.0111.10.111D-W1,0030.0150.05UK1,3130.011.30.013Size %Envolope wagesTotalRO0.616.216.8LV3.47.911.3BG1.96.18.0PL1.05.86.8LT1.45.36.7IT1.04.45.4EE1.22.53.7HU1.21.93.1EU270.62.22.7SK0.71.82.5PT0.61.72.3EL0.90.71.6SI0.31.11.4BE0.60.91.4ES0.50.91.4AT0.50.81.2NL0.80.41.1FR0.60.51.1IE0.60.51.1CZ0.60.41.1DK0.70.10.8D-E0.10.60.7SE0.50.20.7LU0.50.10.7MT0.40.20.6CY0.10.40.6DE0.20.20.4FI0.10.20.4D-W0.20.10.2UK0.10.00.1

Undeclared activities

Undeclared workPercentage of persons who are 'self declaring' that their doing undeclared work

Undeclared activities_

As % of normal paid working hoursAverage hours of those doing undeclared work as % of normal paid working hours

UNECE vs EUROBAROMETER

Average hours of undeclared work per yearAverage hours of those doing undeclared work per year

Population

Undeclared work of total potential work volume of population15+

Envelope wagesTotal % of envelope wages

Undeclared work of total work volumeTotal % of envelope wagesUndeclared work of total work volume and total % of envelope wages

Undeclared workTotal answersYes1,0097%1,0406%1,0005%5031%1,0247%1,5103%5072%1,00718%1,0033%1,00411%1,0004%1,0073%26,6595%1,0264%1,0396%1,0007%1,0034%1,0173%1,0177%5105%1,01015%5002%1,00113%1,0005%1,0023%1,0044%1,00110%1,0375%1,0756%UK1,3132%How many weeks?Total answersAverage/person6610.16010.95020.6324.5687.6397.6104.71785.8278.31099.63512.72814.51,18510.5453679.16711.83515.926226813.42311.515216.8829.31339.94912.92616.1418.71006.2485.9628.6284.9How many hours?Total answersAverage/weekAverage/yearNormal paid working hoursAs % of normal paid working hoursAT6611.211317106.620.5BE6014.515817109.240.6BG5031.5649171037.951.9CY38.9218171012.750.1CZ6820.615717109.160.6DE3912.59517105.560.2D-E1013.76417103.770.1DK17811.86817104.000.7D-W2712.310217105.970.2EE10919182171010.671.2EL3529.6376171021.980.9ES2819276171016.110.5EU271,18518.9198171011.610.6FI4517.15117103.000.1FR6718.316717109.740.6HU6725.1296171017.321.2IE3515.9253171014.780.6IT2625.5561171032.811.0LT6825.9347171020.301.4LU2316.3187171010.960.5LV15223.2390171022.793.4MT812.4363171021.250.4NL13310.110017105.850.8PL4927.8359171020.971.0PT2619.9320171018.740.6RO4130.6266171015.570.6SE10012.67817104.570.5SI4816.49717105.660.3SK6223198171011.570.7UK2816.58117104.730.1Envelope wagesTotalEnvelope wagesAverage percentageTotal % of envelope wages1,0094%18.90.761,0406%14.40.861,00014%43.56.095034%10.80.431,0243%13.70.411,5101%23.30.235072%31.40.631,0072%5.60.111,0031%50.051,0048%312.481,0003%230.691,0075%18.70.9426,6595%43.22.161,0263%8.10.241,0391%540.541,0008%23.61.891,0032%25.80.521,0177%62.94.401,01711%48.45.325101%11.10.111,01017%46.47.895001%200.201,0012%18.50.371,00011%52.75.801,0024%42.21.691,00423%70.416.191,0013%7.40.221,0375%22.91.151,0757%25.11.761,3131%1.30.01

EurobarometerUNECEEurobarometer% 15+% actievenLV13.66.443.426.44BG10.24.051.904.05LT18.92.741.422.74HU11.92.601.212.60EE9.62.161.172.16PL15.72.291.052.29IT14.82.190.982.19NL11.240.761.24CZ6.61.180.641.18RO17.71.290.621.29IE41.000.591.00BE3.51.150.551.15ES11.20.930.480.93AT7.90.820.460.82SE1.30.790.460.79UNECEUndeclared workEnvolope wagesLV13.63.427.88811.31BG10.21.906.097.99LT18.91.425.3246.74HU11.91.211.8883.10EE9.61.172.483.65PL15.71.055.7976.85IT14.80.984.4035.39NL10.760.371.13CZ6.60.640.4111.05RO17.70.6216.19216.81IE40.590.5161.11BE3.50.550.8641.42ES11.20.480.9351.42AT7.90.460.7561.22SE1.30.460.2220.68

EurobarometerUNECE'Self declared" undeclared work Eurobarometer compared to non-observed economy as % of GDP

UNECEEurobarometer: undeclared workEurobarometer: envelope wages'Self declared" undeclared work Eurobarometer compared to non-observed economy as % of GDP

bev 65-7980+15-bev act leeftijdactiviteitsgraad200720072007deel popilatie 15+15-64actieve van +15EU (27 countries)12.60EU (27 countries)4.30EU (27 countries)15.8067.30.80EU (27 countries)64.451.47EU (25 countries)12.60EU (25 countries)4.40EU (25 countries)15.9067.10.80EU (25 countries)64.751.62Euro area (13 countries)13.30Euro area (13 countries)4.60Euro area (13 countries)15.5066.60.79Euro area (13 countries)64.650.92Euro area (12 countries)13.30Euro area (12 countries)4.60Euro area (12 countries)15.5066.60.79Euro area (12 countries)64.650.92Belgium12.50Belgium4.60Belgium17.0065.90.79Belgium6148.43Bulgaria13.80Bulgaria3.50Bulgaria13.4069.30.80Bulgaria58.646.89Czech Republic11.10Czech Republic3.30Czech Republic14.4071.20.83Czech Republic65.354.31Denmark11.20Denmark4.10Denmark18.6066.10.81Denmark77.462.85Germany15.20Germany4.60Germany13.9066.30.77Germany67.551.98% actieve% van +15Estonia13.60Estonia3.50Estonia14.90680.80Estonia68.154.4253.123.426.44Ireland8.40Ireland2.70Ireland20.3068.60.86Ireland68.659.0546.891.904.05Greece14.70Greece3.90Greece14.3067.10.78Greece6147.7651.801.422.74Spain12.10Spain4.50Spain14.5068.90.81Spain64.852.2246.561.212.60France11.40France4.80France18.6065.20.80France6350.4654.421.172.16Italy14.60Italy5.30Italy14.10660.77Italy58.444.8745.761.052.29Cyprus9.50Cyprus2.80Cyprus17.9069.80.85Cyprus69.659.1744.870.982.19Latvia13.70Latvia3.40Latvia14.0068.90.80Latvia66.353.1261.150.761.24Lithuania12.50Lithuania3.10Lithuania15.9068.50.81Lithuania63.651.8054.310.641.18Luxembourg10.70Luxembourg3.30Luxembourg18.3067.70.83Luxembourg63.652.7048.440.621.29Hungary12.30Hungary3.60Hungary15.2068.90.81Hungary57.346.5659.050.591.00Malta10.80Malta3.00Malta16.7069.50.83Malta54.845.7248.430.551.15Netherlands10.80Netherlands3.70Netherlands18.1067.40.82Netherlands74.361.1552.220.480.93Austria12.40Austria4.50Austria15.6067.50.80Austria70.256.1456.140.460.82Poland10.60Poland2.90Poland15.8070.70.84Poland54.545.7657.780.460.79Portugal13.20Portugal4.10Portugal15.5067.20.80Portugal67.954.00Romania12.20Romania2.70Romania15.4069.70.82Romania58.848.44Slovenia12.50Slovenia3.40Slovenia14.0070.10.82Slovenia66.654.29Slovakia9.30Slovakia2.50Slovakia16.1072.10.86Slovakia59.451.05Finland12.30Finland4.20Finland17.1066.40.80Finland69.355.51Sweden12.00Sweden5.40Sweden17.0065.60.79Sweden73.157.78United Kingdom11.50United Kingdom4.50United Kingdom17.6066.40.81United Kingdom71.557.62Croatia14.00Croatia3.10Croatia15.6067.30.80Macedonia, the former Yugoslav Republic of9.60Macedonia, the former Yugoslav Republic of1.60Macedonia, the former Yugoslav Republic of18.9069.90.86Turkey:Turkey:Turkey27.9000Iceland:Iceland:Iceland:00Croatia55.6Liechtenstein8.90Liechtenstein3.00Liechtenstein17.10710.8564535585Turkey45.9Norway10.00Norway4.70Norway19.4065.90.817617866Iceland84.6Switzerland11.60Switzerland4.60Switzerland15.80680.8076009501Norway75.4European Free Trade Association (CH, IS, LI, NO):European Free Trade Association (CH, IS, LI, NO):European Free Trade Association (CH, IS, LI, NO):00Switzerland77,9 (i):=Not available:=Not available b=Break in series:=Not available b=Break in series0United States72Japan70:=Not available p=Provisional value b=Break in series i=See explanatory textOnline support Legal NoticeFootnotes...

Footnotes...

Chart20.622736842116.1923.41894736847.8881.89736842116.091.04859649125.7971.42071345035.3240.98421052634.4031.17333333332.481.21243274851.8880.58026315792.160.69403508771.7570.56208771931.6880.87934502920.690.28292397661.1450.55456140350.8640.48333333330.9350.46306432750.7560.76015789470.370.58431578950.540.59136842110.5160.64088888890.4110.72042105260.1120.07530994150.6280.45684210530.2220.54809941520.1110.42493567250.20.12751461990.4320.16666666670.2330.120.2430.17910526320.050.09456140350.013

Undeclared work of total work volumeTotal % of envelope wagesUndeclared work of total work volume and total % of envelope wages

Undeclared activitiesUndeclared workTotal answersYes1,00718%1,01015%1,00113%1,00411%1,00110%1,0097%1,0247%1,0007%1,0177%1,0406%1,0396%1,0756%1,0005%26,6595%5105%1,0005%1,0375%1,0004%1,0264%1,0034%1,0044%1,5103%1,0033%1,0073%1,0173%1,0023%5072%5002%UK1,3132%5031%How many weeks?Total answersAverage/person829.3324.526225020.615216.82616.13515.92814.56813.44912.93512.76711.82311.56010.91,18510.56610.11339.91099.6679.1418.7628.6278.3687.6397.61006.2485.91785.8284.9104.7453How many hours?Total answersAverage/weekAverage/yearNormal paid working hoursAs % of normal paid working hoursBG5031.5649171037.95IT2625.5561171032.81LV15223.2390171022.79EL3529.6376171021.98MT812.4363171021.25PL4927.8359171020.97LT6825.9347171020.30PT2619.9320171018.74HU6725.1296171017.32ES2819276171016.11RO4130.6266171015.57IE3515.9253171014.78CY38.9218171012.75EU271,18518.9198171011.61SK6223198171011.57LU2316.3187171010.96EE10919182171010.67FR6718.316717109.74BE6014.515817109.24CZ6820.615717109.16AT6611.211317106.62D-W2712.310217105.97NL13310.110017105.85SI4816.49717105.66DE3912.59517105.56UK2816.58117104.73SE10012.67817104.57DK17811.86817104.00D-E1013.76417103.77FI4517.15117103.00Size %LV3.4BG1.9LT1.4HU1.2EE1.2PL1.0IT1.0EL0.9NL0.8DK0.7SK0.7CZ0.6RO0.6IE0.6FR0.6EU270.6PT0.6BE0.6LU0.5ES0.5AT0.5SE0.5MT0.4SI0.3D-W0.2DE0.2CY0.1FI0.1UK0.1D-E0.1Envelope wagesTotalYesAverage percentage of incomeTotal % of envelope wagesRO1,0040.2370.416.192LV1,0100.1746.47.888BG1,0000.1443.56.09PL1,0000.1152.75.797LT1,0170.1148.45.324IT1,0170.0762.94.403EE1,0040.08312.48EU2726,6590.0543.22.16HU1,0000.0823.61.888SK1,0750.0725.11.757PT1,0020.0442.21.688SI1,0370.0522.91.145ES1,0070.0518.70.935BE1,0400.0614.40.864AT1,0090.0418.90.756EL1,0000.03230.69D-E5070.0231.40.628FR1,0390.01540.54IE1,0030.0225.80.516CY5030.0410.80.432CZ1,0240.0313.70.411NL1,0010.0218.50.37FI1,0260.038.10.243DE1,5100.0123.30.233SE1,0010.037.40.222MT5000.01200.2DK1,0070.025.60.112LU5100.0111.10.111D-W1,0030.0150.05UK1,3130.011.30.013Size %Envolope wagesTotalRO0.616.216.8LV3.47.911.3BG1.96.18.0PL1.05.86.8LT1.45.36.7IT1.04.45.4EE1.22.53.7HU1.21.93.1EU270.62.22.7SK0.71.82.5PT0.61.72.3EL0.90.71.6SI0.31.11.4BE0.60.91.4ES0.50.91.4AT0.50.81.2NL0.80.41.1FR0.60.51.1IE0.60.51.1CZ0.60.41.1DK0.70.10.8D-E0.10.60.7SE0.50.20.7LU0.50.10.7MT0.40.20.6CY0.10.40.6DE0.20.20.4FI0.10.20.4D-W0.20.10.2UK0.10.00.1

Undeclared activities

Undeclared workPercentage of persons who are 'self declaring' that their doing undeclared work

Undeclared activities_

As % of normal paid working hoursAverage hours of those doing undeclared work as % of normal paid working hours

UNECE vs EUROBAROMETER

Average hours of undeclared work per yearAverage hours of those doing undeclared work per year

Population

Undeclared work of total potential work volume of population15+

Envelope wagesTotal % of envelope wages

Undeclared work of total work volumeTotal % of envelope wagesUndeclared work of total work volume and total % of envelope wages

Undeclared workTotal answersYes1,0097%1,0406%1,0005%5031%1,0247%1,5103%5072%1,00718%1,0033%1,00411%1,0004%1,0073%26,6595%1,0264%1,0396%1,0007%1,0034%1,0173%1,0177%5105%1,01015%5002%1,00113%1,0005%1,0023%1,0044%1,00110%1,0375%1,0756%UK1,3132%How many weeks?Total answersAverage/person6610.16010.95020.6324.5687.6397.6104.71785.8278.31099.63512.72814.51,18510.5453679.16711.83515.926226813.42311.515216.8829.31339.94912.92616.1418.71006.2485.9628.6284.9How many hours?Total answersAverage/weekAverage/yearNormal paid working hoursAs % of normal paid working hoursAT6611.211317106.620.5BE6014.515817109.240.6BG5031.5649171037.951.9CY38.9218171012.750.1CZ6820.615717109.160.6DE3912.59517105.560.2D-E1013.76417103.770.1DK17811.86817104.000.7D-W2712.310217105.970.2EE10919182171010.671.2EL3529.6376171021.980.9ES2819276171016.110.5EU271,18518.9198171011.610.6FI4517.15117103.000.1FR6718.316717109.740.6HU6725.1296171017.321.2IE3515.9253171014.780.6IT2625.5561171032.811.0LT6825.9347171020.301.4LU2316.3187171010.960.5LV15223.2390171022.793.4MT812.4363171021.250.4NL13310.110017105.850.8PL4927.8359171020.971.0PT2619.9320171018.740.6RO4130.6266171015.570.6SE10012.67817104.570.5SI4816.49717105.660.3SK6223198171011.570.7UK2816.58117104.730.1Envelope wagesTotalEnvelope wagesAverage percentageTotal % of envelope wages1,0094%18.90.761,0406%14.40.861,00014%43.56.095034%10.80.431,0243%13.70.411,5101%23.30.235072%31.40.631,0072%5.60.111,0031%50.051,0048%312.481,0003%230.691,0075%18.70.9426,6595%43.22.161,0263%8.10.241,0391%540.541,0008%23.61.891,0032%25.80.521,0177%62.94.401,01711%48.45.325101%11.10.111,01017%46.47.895001%200.201,0012%18.50.371,00011%52.75.801,0024%42.21.691,00423%70.416.191,0013%7.40.221,0375%22.91.151,0757%25.11.761,3131%1.30.01

EurobarometerUNECEEurobarometer% 15+% actievenLV13.66.443.426.44BG10.24.051.904.05LT18.92.741.422.74HU11.92.601.212.60EE9.62.161.172.16PL15.72.291.052.29IT14.82.190.982.19NL11.240.761.24CZ6.61.180.641.18RO17.71.290.621.29IE41.000.591.00BE3.51.150.551.15ES11.20.930.480.93AT7.90.820.460.82SE1.30.790.460.79UNECEUndeclared workEnvolope wagesLV13.63.427.88811.31BG10.21.906.097.99LT18.91.425.3246.74HU11.91.211.8883.10EE9.61.172.483.65PL15.71.055.7976.85IT14.80.984.4035.39NL10.760.371.13CZ6.60.640.4111.05RO17.70.6216.19216.81IE40.590.5161.11BE3.50.550.8641.42ES11.20.480.9351.42AT7.90.460.7561.22SE1.30.460.2220.68

EurobarometerUNECE'Self declared" undeclared work Eurobarometer compared to non-observed economy as % of GDP

UNECEEurobarometer: undeclared workEurobarometer: envelope wages'Self declared" undeclared work Eurobarometer compared to non-observed economy as % of GDP

bev 65-7980+15-bev act leeftijdactiviteitsgraad200720072007deel popilatie 15+15-64actieve van +15EU (27 countries)12.60EU (27 countries)4.30EU (27 countries)15.8067.30.80EU (27 countries)64.451.47EU (25 countries)12.60EU (25 countries)4.40EU (25 countries)15.9067.10.80EU (25 countries)64.751.62Euro area (13 countries)13.30Euro area (13 countries)4.60Euro area (13 countries)15.5066.60.79Euro area (13 countries)64.650.92Euro area (12 countries)13.30Euro area (12 countries)4.60Euro area (12 countries)15.5066.60.79Euro area (12 countries)64.650.92Belgium12.50Belgium4.60Belgium17.0065.90.79Belgium6148.43Bulgaria13.80Bulgaria3.50Bulgaria13.4069.30.80Bulgaria58.646.89Czech Republic11.10Czech Republic3.30Czech Republic14.4071.20.83Czech Republic65.354.31Denmark11.20Denmark4.10Denmark18.6066.10.81Denmark77.462.85Germany15.20Germany4.60Germany13.9066.30.77Germany67.551.98% actieve% van +15Estonia13.60Estonia3.50Estonia14.90680.80Estonia68.154.4253.123.426.44Ireland8.40Ireland2.70Ireland20.3068.60.86Ireland68.659.0546.891.904.05Greece14.70Greece3.90Greece14.3067.10.78Greece6147.7651.801.422.74Spain12.10Spain4.50Spain14.5068.90.81Spain64.852.2246.561.212.60France11.40France4.80France18.6065.20.80France6350.4654.421.172.16Italy14.60Italy5.30Italy14.10660.77Italy58.444.8745.761.052.29Cyprus9.50Cyprus2.80Cyprus17.9069.80.85Cyprus69.659.1744.870.982.19Latvia13.70Latvia3.40Latvia14.0068.90.80Latvia66.353.1261.150.761.24Lithuania12.50Lithuania3.10Lithuania15.9068.50.81Lithuania63.651.8054.310.641.18Luxembourg10.70Luxembourg3.30Luxembourg18.3067.70.83Luxembourg63.652.7048.440.621.29Hungary12.30Hungary3.60Hungary15.2068.90.81Hungary57.346.5659.050.591.00Malta10.80Malta3.00Malta16.7069.50.83Malta54.845.7248.430.551.15Netherlands10.80Netherlands3.70Netherlands18.1067.40.82Netherlands74.361.1552.220.480.93Austria12.40Austria4.50Austria15.6067.50.80Austria70.256.1456.140.460.82Poland10.60Poland2.90Poland15.8070.70.84Poland54.545.7657.780.460.79Portugal13.20Portugal4.10Portugal15.5067.20.80Portugal67.954.00Romania12.20Romania2.70Romania15.4069.70.82Romania58.848.44Slovenia12.50Slovenia3.40Slovenia14.0070.10.82Slovenia66.654.29Slovakia9.30Slovakia2.50Slovakia16.1072.10.86Slovakia59.451.05Finland12.30Finland4.20Finland17.1066.40.80Finland69.355.51Sweden12.00Sweden5.40Sweden17.0065.60.79Sweden73.157.78United Kingdom11.50United Kingdom4.50United Kingdom17.6066.40.81United Kingdom71.557.62Croatia14.00Croatia3.10Croatia15.6067.30.80Macedonia, the former Yugoslav Republic of9.60Macedonia, the former Yugoslav Republic of1.60Macedonia, the former Yugoslav Republic of18.9069.90.86Turkey:Turkey:Turkey27.9000Iceland:Iceland:Iceland:00Croatia55.6Liechtenstein8.90Liechtenstein3.00Liechtenstein17.10710.8564535585Turkey45.9Norway10.00Norway4.70Norway19.4065.90.817617866Iceland84.6Switzerland11.60Switzerland4.60Switzerland15.80680.8076009501Norway75.4European Free Trade Association (CH, IS, LI, NO):European Free Trade Association (CH, IS, LI, NO):European Free Trade Association (CH, IS, LI, NO):00Switzerland77,9 (i):=Not available:=Not available b=Break in series:=Not available b=Break in series0United States72Japan70:=Not available p=Provisional value b=Break in series i=See explanatory textOnline support Legal NoticeFootnotes...

Footnotes...