Underground Economy
/ˌʌndərˈɡraʊnd ɪˈkɑnəmi/
Definitions
- (n.) The segment of an economy comprising unreported or illegal transactions not captured by official statistics.
The government increased efforts to reduce the underground economy to improve tax compliance.
- (n.) Economic activity that circumvents legal or regulatory frameworks, including tax evasion, unlicensed commerce, and black market operations.
Workers paid off the books contribute to the underground economy.
Forms
- underground economy
Related terms
See also
Commentary
The term encompasses both illegal and unreported legal economic activities; careful distinction helps in statutory drafting and economic regulation contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.