Low Unemployment, Reduced Payroll Taxes Shrink Germany's Shadow Economy

Though it's still double the size of its U.S. counterpart

Economic think tanks have revealed that Germany is currently seeing the lowest level of moonlighting in two decades. Researchers say the reasons for the declining hidden economy are low unemployment and other factors.

Low unemployment and a drop in statutory pension premiums resulted in shrinking shadow economy in Germany, two economic research centers reported on Wednesday.

Scientists from Linz University and the Tübingen-based Institute for Applied Economic Research (IAW) claimed moonlighting levels in the country had reached its lowest level in about 20 years.