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Migrants in the Italian Underground Economy

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  • Fabio Quassoli

Abstract

This paper focuses on the typical paths of migrants’ insertion in the informal economy in Italy. It begins with a review of the international debate on the informal economy and ethnic business in order to evaluate the extent to which the current descriptive and explanatory models fit the specificity of the Italian case. When applied to the Italian context they overemphasize the relationship between the informal sector – characterized mainly by self‐employment and ethnic business – and the transformation of the formal labour market due to economic changes – the crisis of the fordist way of production, global restructuring of the manufacturing sector and so on. On the contrary, the underground economy is a long‐standing characteristic in Italy. It is an overall structural element of the Italian economy and a much more complex phenomenon than in other countries. For many reasons, migrants’ insertion in the informal economy in Italy does not produce a new trend but represents an element of continuity in the economic organization and involves documented and undocumented migrants as well as many types of Italian workers. On the other hand, this paper highlights the central role of the institutional framework – immigration policies and their implementation – in the context of the formal and actual constraints which inform immigrants’ strategies of incorporation into the formal/informal labour market. The implementation of the institutional framework, by different branches of the public administration and by the judicial system, interacts with immigrants’ economic strategies and generates mobile borders between different types of informal arrangements, as well as between the informal and illegal economy. Taking into account the structural and geographical characteristics of each economic sector, the economic institutional framework, the legal framework and the decision‐making processes that produce them, it is possible to reconsider the concept of the informal economy and to re‐evaluate its role in the most important explanatory models. Cet article concerne les voies habituelles d’insertion des migrants dans l’économie informelle en Italie. Afin d’évaluer jusqu’à quel point les modèles descriptifs et explicatifs actuels peuvent être appliqués aux spécificités du cas italien, l’auteur passe en revue les débats internationaux sur l’économie informelle et sur le commerce ethnique. Dans le contexte italien, ils accordent trop d’importance aux relations entre le secteur informel – caractérisé principalement par le travail indépendant et par le commerce ethnique – et la transformation du marché du travail officiel due aux changements économiques – la crise de la production de type fordiste, la restructuration globale de l’industrie, etc. Au contraire, le marché parallèle est une caractéristique de longue durée en Italie. C’est un élément de la structure générale de l’économie italienne et un phénomène beaucoup plus complexe que dans d’autres pays. Pour de nombreuses raisons, l’insertion du migrant dans l’économie informelle en Italie ne produit pas une nouvelle tendance mais représente un élément de continuité dans l’organisation économique et inclut des migrants déclarés et non déclarés ainsi que de nombreux types de travailleurs italiens. D’un autre côté, cet article souligne le rôle central des structures institutionelles – les politiques de l’immigration et leur application – dans le contexte des contraintes formelles et informelles, qui informent les stratégies d’incorporation des immigrants dans le marché du travail formel et informel. L’application des structures institutionnelles par les différentes branches de l’administration publique et par le système judiciaire et les stratégies économiques des immigants s’influencent mutuellement, et elle produit des frontières mobiles entre les différents types d’arrangements informels ainsi qu’entre l’économie informelle et l’économie illégale. Si l’on considère les caractéristiques structurelles et géographiques de chacun des secteurs économiques, la structure économique institutionnelle, la structure légale et les processus décisionnels qui les produisent, il est possible de repenser le concept d’économie informelle et de réévaluer son rôle dans les modèles explicatifs les plus importants.

Suggested Citation

  • Fabio Quassoli, 1999. "Migrants in the Italian Underground Economy," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 212-231, June.
  • Handle: RePEc:bla:ijurrs:v:23:y:1999:i:2:p:212-231
    DOI: 10.1111/1468-2427.00192
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    Cited by:

    1. Emanuele Bracco & Luisanna Onnis, 2022. "Immigration, amnesties, and the shadow economy," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 1135-1162, October.
    2. Effrosyni Adamopoulou & Ezgi Kaya, 2020. "Not just a work permit: EU citizenship and the consumption behaviour of documented and undocumented immigrants," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1552-1598, November.
    3. Mutascu Mihai & Hegerty Scott W., 2022. "The role of refugees in the underground economy of the European Union," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-19, January.
    4. Semra Purkis & Fatih Güngör, 2017. "Drifting Here and There But Going Nowhere: the Case of Migrants from Turkey in Milan in the Era of Global Economic Crisis," Journal of International Migration and Integration, Springer, vol. 18(2), pages 439-461, May.

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