English Lexicon

Shadow Economy

/ˈʃædoʊ ˈɛkəˌnɑmi/
nounCEFR C1 (Advanced)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    Economic activities that are not monitored or regulated by the government.

    "Many workers in the shadow economy do not pay taxes on their earnings."
  2. 2

    A sector of the economy that operates outside of official channels, often involving illegal or unreported transactions.

    "The shadow economy can include everything from unregistered businesses to illegal trade."

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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

The term 'shadow economy' emerged in the late 20th century, combining 'shadow', from Old English 'sceadu', meaning 'shade' or 'darkness', and 'economy', from Greek 'oikonomia', meaning 'household management'. It reflects the hidden aspects of economic activity that occur outside of formal regulations.

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