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The Strange Case of Dr. “Unemployed” and Mr “Hidden” in Italy

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  • Gaetano Lisi

    ()
    (University of Cassino)

Abstract

While the literature is unanimous in considering unemployment and underground employment as strongly connected and interdependent phenomena, the link between existing causality is controversial. This empirical paper aims at clarifying this intricate relationship. Precisely, two key results emerge from the analysis. The first shows that unemployment (positively) influences the underground employment and vice versa. The second demonstrates that the impact of unemployment on underground employment is stronger than the reverse.

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File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I4-P258.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 30 (2010)
Issue (Month): 4 ()
Pages: 2802-2816

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Handle: RePEc:ebl:ecbull:eb-10-00490

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Related research

Keywords: underground /hidden /informal /shadow employment (economy); unemployment; models with panel data; simultaneous equations models;

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References

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Cited by:
  1. Lisi, Gaetano, 2010. "Optimal taxation and monitoring in an economy with matching frictions and underground activities," MPRA Paper 27701, University Library of Munich, Germany.

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