This publication provides an overview of the hidden economy dynamics in Bulgaria. The authors make an analysis of the effects of the crisis on the labor market and undeclared work based on the results from the Hidden Economy Monitoring System. After examining the European and the Bulgarian experience of the last five years, they make recommendations to the improvement of the public policies for reducing the hidden economy. The authors also justify the necessity of combining administrative control, socio-economic measures and structural reforms in the control administrations and the law enforcement agencies.
