CFAs: Improving Fairness in the Economy through a Better Understanding of Undeclared and Underdeclared Work

Scope

• Un(der)declared work, as well as the evasion of compulsory payments linked to workers’ remuneration (e.g. bogus self-employment to avoid payment to social security schemes) hinder fair social market economy and reduce the sustainability of social protection system.
• The proliferation of disruptive technologies, the increased presence of third-country nationals in the Member States, as well as rapidly rising living costs are leading to higher volatility on the labour market, including an accelerated rate of change in the characteristics of labour demand and supply, and new forms of employment such as e.g. project work in the gig-economy. These circumstances are conducive to growing inequality on the labour market and a spread of unfair practices, including un(der)declared work and the evasion of compulsory payments.
• The SSH research activities are expected to have a strong multidisciplinary aspect. Proposals should contribute to advancing research on the scope, volume and/or characteristics of un(der)declared work in the economy and/or the evasion of compulsory payments linked to workers’ remuneration. Subsequent research activities should contribute to their understanding of the causes and main structural drivers behind actors’ willingness to engage in un(der)declared work and/or the related evasion of compulsory payments. Moreover, the research project should contribute to the evidence-based assessment of policies seeking to tackle un(der)declared work and/or the evasion of compulsory payments.
• The geographical focus of the research activities should comprise a group of economies with a heterogeneous prevalence of un(der)declared work. The proposals are encouraged to consider the impact of disruptive technologies (e. g. digital platforms, cloud computing, generative artificial intelligence) on the proliferation and/or changing features of un(der)declared work.
• The proposal may:
  • focus on methods seeking to address social desirability bias in public surveys
  • focus on experiments and/or counterfactual analysis to advance the measurement of the impact of policy interventions
  • focus on mechanisms of efficient cooperation among national authorities responsible for tackling un(der)declared work
  • explore opportunities for the use of machine learning in tackling un(der)declared work
  • explore un(der)declared work in the platform economy and/or in new professions created in response to rapid technological change
  • focus on un(der)declared work among mobile workers
  • insights from behavioural research into drivers behind un(der)declared work and/or the evasion of compulsory payments.
  • explore the potential for social-demographic or other typologies of undeclared work
  • aim at a establishing a more systematic link between un(der)declared work and taxation system or social security system.
  • examine gender and social stratification variations in the nature of un(der)declared work (e.g., occupational segregation, motives, working time patterns).

Funding Information

• Budget (EUR) – Year 2025: 10 200 000
• Contributions: around 3400000

Expected Outcomes

• Projects should contribute to all of the following expected outcomes:
  • Policymakers and social partners have insights into the scope and/or characteristics of un(der)declared work or actors involved in un(der)declared work.
  • Policymakers receive actionable advice on policy measures effective in reducing the prevalence of un(der)declared work and/or its adverse social consequences.

Eligibility Criteria

• Entities eligible to participate:
  • Any legal entity, regardless of its place of establishment, including legal entities from nonassociated third countries or international organisations (including international European research organisations) is eligible to participate (whether it is eligible for funding or not), provided that the conditions laid down in the Horizon Europe Regulation have been met, along with any other conditions laid down in the specific call/topic.
  • A ‘legal entity’ means any natural or legal person created and recognised as such under national law, EU law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without legal personality.
• To become a beneficiary, legal entities must be eligible for funding.
• To be eligible for funding, applicants must be established in one of the following countries:
  • the Member States of the European Union, including their outermost regions:
    • Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
  • the Overseas Countries and Territories (OCTs) linked to the Member States:
    • Aruba (NL), Bonaire (NL), Curação (NL), French Polynesia (FR), French Southern and Antarctic Territories (FR), Greenland (DK), New Caledonia (FR), Saba (NL), Saint Barthélemy (FR), Sint Eustatius (NL), Sint Maarten (NL), St. Pierre and Miquelon (FR), Wallis and Futuna Islands (FR).
  • countries associated to Horizon Europe;
    • Albania, Armenia, Bosnia and Herzegovina, Canada, Faroe Islands, Georgia, Iceland, Israel, Kosovo, Moldova, Montenegro, New Zealand, North Macedonia, Norway, Serbia, Tunisia, Türkiye, Ukraine, United Kingdom.

For more information, visit EC.