Description for Chart 1
Framework for non-observed economy and underground economy
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This diagram illustrates the hierarchy framework for the non-observed economy. The non-observed economy is composed of underground economy, household production for own final use, and deficiencies in basic data collection programs. The underground economy is composed of the hidden sector, the illegal sector, and the informal sector. The hidden sector comprises under-reported and not-reported activities including skimming, construction-related, hidden rent, undeclared tips, and trade-related activities. The illegal sector comprises of unlicensed tobacco and alcohol operations, and illegal drug and prostitution operations. The informal sector comprises home-based child care services, private household services, other personal care services, direct sales of agricultural products, and other industries.
Some components of the non-observed economy are not included in the scope of the study. These components are illegal operations on illegal drugs and prostitution, household production for own final use, deficiencies in basic data collection programs and the other industries in the informal sector.
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