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Consumer participation in the informal economy

Kevin F. McCrohan, James D. Smith

Journal of the Academy of Marketing Science · 1987 · Volume 15 · Issue 4

DOI: 10.1007/BF02723291

Abstract

This study investigates consumer use of informal suppliers in order to determine if there is a segment that is prone to deal with this type of vendor. Based on a national probability sample of households the authors found that such a segment exists and that the demographic profile of this segment is congruent with prior research on income tax evasion. The authors conclude that there appears to be a probable relationship between a propensity to evade income taxes and the heavy use of informal suppliers.

Keywords

Informal Economy, Heavy User, Underground Economy, Informal Market, Light User

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