Undeclared Work in Croatia: Some Evidence from SplitMarijana Baric

The Context of Research

Split, Croatia

The Context of Research

Split, Croatia

Conceptualisation of the Framework: Social Exchange Theory

• The Dominant model (Homans, 1958; Blau, 1964)• Utilitarian• Combination of economic and psychological needs• Individuals seek interaction in a purely rational process

• Incorporation of anthropological and sociological perspectives (Weber, 1947; Mauss, 1925)• Contextual Analysis • Symbolic Meaning• Macro structures • Expansion of rules and norms operating within the exchange

situation

THE GOVERNMENT

Methodology

• Mixed methods: -300 household surveys

-background information-psychological contract with the government-tolerance of undeclared work-perception of others’ tolerance of undeclared

work-use of connections -undeclared work

-20 in-depth interviews: Semi-structured with the aim to better understand how attitudes and participant world views form.

Undeclared Work in Split

“I do not engage in such activities, I know many people do but I have personally never approved of this”.

……….

“Ah, but that’s different, it’s just the girl from the neighbourhood, that doesn’t count”.

Questionnaire Respondents

Undeclared Work in Split

SUPPLY SIDE:

• 39.3% engage with informality in some way

• 28% participate in both economies

• 11.3% are fully informal

The Relationship With the Government

State of the

social contract

The Media

Local authorities and individual departments

Well-known individual

government figures

Government representatives

that interact with individuals

“The State”(broadest

conceptualisation)

Social Norms

“The government puts up too many barriers and to be honest I wouldn’t really know how to go about doing this. I don’t have experience with paperwork or accountancy.”

“I think probably it would be a lengthy process, and it wouldn’t make a difference because no one else is declaring things.”

Self-employed: fully informal

State of the

social contract

The Media

Local authorities and individual departments

Well-known individual

government figures

Government representatives

that interact with individuals

“The State”(broadest

conceptualisation)

Social Norms

“Inspectors are quite good, they know that we wouldn’t be able to survive if we tried to follow every single rule exactly so they check with their eyes half closed- I think as long as everything is safe and normal its fine”

“Last time they near enough fined us for stuff like the waiters wearing the wrong apron or the toilet paper colour being slightly off”

State of the

social contract

The Media

Local authorities and individual departments

Well-known individual

government figures

Government representatives

that interact with individuals

“The State”(broadest

conceptualisation)

Social Norms

“…The government doesn’t treat its people right so why should we do anything for them…….you always hear stories of the way government treats people unfairly.”

State of the

social contract

The Media

Local authorities and individual departments

Well-known individual

government figures

Government representatives

that interact with individuals

“The State”(broadest

conceptualisation)

Social Norms

“They [the state] do not do these things to for the good of the country or its citizens but the politicians’ individual benefits. It is all done to.…show that things are being done, it is only on the surface and they refuse to get to the real problems”

Conclusions

• Shift to direct methods: changing formal institutions

• Vast importance of different ways of framing of “the government”

• As part of this it is crucial for the government to open a dialogue to renegotiate the psychological contract so that we can begin to see a change in perceptions

• More research looking at social and institutional factors is needed

• Further research on expectations of citizens so as to better understand how they develop and how they can be managed