Informal economic activity : a county-level analysis of South Carolina's Pee Dee region

Abstract

The informal -- black, shadow, or underground -- economy, is commonly known for encompassing illegal activities. More generally, the informal economy covers all economic activity that occurs "off the books," thus unrecorded and unreported to governmental taxing authorities. Research on the informal economy in the U.S. points to its prevalence in low-wage service-based local economies. This study investigates the presence of informal economic activity in the Pee Dee region of South Carolina, comprising the counties of Chesterfield, Darlington, Dillon, Florence, Marion and Marlboro. Results provide a strong underground economy.