Informal economy is an ever-present phenomenon in all economies around the globe.
Accurate measurements of its scale cannot be evaluated exactly as illegal production, and
production of goods and services that are permitted and legal, but are partially or
completely concealed from individuals by the tax authorities are at play. This practice
involves tax evasion and payment of contributions, but also non-compliance with
regulations and legislation. The times of crisis bring the deterioration of the situation of the
individual and therefore give way to the phenomenon of flourishing informal
economy. The thesis focuses on the emergence of the informal economy in the field of service
activities during the COVID-19 epidemic in connection to the measures taken by the government to
manage the crisis. The objectives of the thesis were to study the literature and sources
in the field of informal economy and present the causes and effects of the said economy on the
overall economy and society. Not only that, the aim is to analyse and assess the state
of the informal economy in Slovenia before and after COVID-
19. The main research methods applied in the analysis were anonymous surveys and
interviews.
Analysis confirmed that the RS government's measures to contain the COVID-19 epidemic were too
restrictive in some service activities. The implementation of certain measures which
included a complete shutdown of service activities has led to an increased utilization
of the informal economy in these fields. As a result, public opinion about the informal economy and
service providers is increasingly becoming more tolerant.
The key finding of the thesis is that the opinion of various service providers must be taken into
account by the government, but also, their representatives are to be involved in the decision
making when new measures are being prepared in the areas that include small businesses. Mutual
contributions can form a more solid basis for further and more in- depth research in
both economic and sociological terms.
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