1. Explaining the underground economy: state and social structure.
- Author
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Weiss, Linda
- Subjects
- *
INFORMAL sector , *BLACK market , *CAPITALISM , *SOCIAL structure , *LABOR market , *SOCIOLOGY , *LABOR market segmentation - Abstract
This article attempts to explain the underground economy, focusing on state and social structure. It was learned that developments within western capitalism have stimulated considerable interest in the collective, organized aspects of clandestine production, which form the core of the contemporary underground economy. Assumptions that off-the-books employment is extensive and rising throughout the advanced capitalist world, and that this is related either to a crisis of capitalism or to a crisis of the state, was considered. It was argued that the development of a clandestine sector depends on the combined availability of three structural resources such as a dispersed economy, labour market segmentation and a dense system of social networks. It was also argued that the availability of these resources is largely influenced by the historically developed structure and activities of the state, specifically its forms of legal and organizational closure. It was discovered that clandestine work frequently entails a collective, organized endeavour that can involve the mobilization of entire neighborhoods, communities or even industries. According to emerging consensus, such form of underground activity, unmeasured, untaxed and unregulated, is expanding throughout western capitalism.
- Published
- 1987
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