EXPLORING THE DRIVERS OF UNDECLARED ELDERLY HOME HELP PROVISION: INSIGHTS FROM LITHUANIA’S SOCIAL SERVICES SECTOR

Abstract

Undeclared work is a widely debated topic in discussions surrounding labor market developments and tax morale. However, in the discourse on elderly care policy, the issue of undeclared work often remains in the shadow, with a focus instead on informal elderly care as an important resource for meeting the growing needs of the elderly, particularly in Lithuania. This article presents a study whose object is the reasons behind undeclared home help work, specifically where services are provided to elderly individuals by private persons without formal agreements or employment relationships. The study aimed to reveal the opinions of formal social services providers on the reasons behind undeclared work in elderly home help in Lithuania and to discuss it in the broader context of the elderly care sector. The study employes the rational-economic-actor perspective, the institutional theory and C. C. Williams's (2010) framework for understanding undeclared work. The quantitative research (the online survey) was conducted between November 2022 and February 2023. A total of 95 completed questionnaires were obtained. Based on the opinion of formal services providers, elderly people prefer undeclared home help services because it offers more flexibility (reported by 60% of respondents), better customization (59% of respondents), and compensates for the limited quality and availability of formal services (around 40% of respondents). Meanwhile, private persons’ decision to engage in undeclared work is associated with a desire to earn additional income (reported by 75% of respondents), enjoying flexible hours (45% of respondents), and avoiding the tax system’s disadvantages for self-employed care providers (33% of respondents).  The study contributes to the growing body of research on the multifaceted nature of undeclared elderly care work and the diverse motivations for engaging in it within the Lithuanian context. Additionally, it sheds light on the underlying causes of undeclared labor, providing valuable insights for enhancing the elderly care system and informing labor market policies.

Keywords: informal elderly care, undeclared care work, home help services, formal care providers, users demand perspective, supply side perspective