P100. Seeing light in the shadows: the impact of the Kaitz index in explaining the shadow economy

• In Event: Poster Session & Ice Cream Social

Abstract

The current research in progress examines the relationship between the shadow economy, the Kaitz index, and key macroeconomic indicators. The authors test the hypothesis that the level of the shadow economy is influenced by the wage system, wage inequality, and country-specific factors. Using panel regression analysis, we assess the impact of these factors across different countries. Our initial findings indicate that an increase in the Kaitz index correlates with a decline in the shadow economy and an increase in GDP. However, a rise in the median wage has only a moderate positive effect on the shadow economy.

Authors

• Vincentas Giedraitis, Vilnius University

• Andriy Stavytskyy, Taras Shevchenko National University of Kyiv

• Tomas Karpavicius, Vilnius University

• Erstida Ulvidienė, Vilnius University

• Brigita Kavaliauskaite, Vilnius University

• Ganna Kharlamova, Taras Shevchenko National University of Kyiv

• Vitalija Gabnytė-Baranauskė, Vilnius University