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Short, Long and Spatial Dynamics of Informal Employment

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  • Paolo Di Caro
  • Giuseppe Nicotra

Abstract

Di Caro P. and Nicotra G. Short, long and spatial dynamics of informal employment, Regional Studies. This paper analyses regional shadow labour markets. Cross-regional migration flows are introduced in a stochastic two-sector model used to study the effects of regional interactions on informality. Empirical results show that informal activities across Italian regions are driven by the inefficient provision of public goods and high taxes. Regional connections are found to be significant. Place-specific reactions of informal employment to national shocks in the official economy are investigated, finding that the informal sector can act as a complement to or a substitute for formal activities. The summary of the results and policy conclusions are then discussed.

Suggested Citation

  • Paolo Di Caro & Giuseppe Nicotra, 2016. "Short, Long and Spatial Dynamics of Informal Employment," Regional Studies, Taylor & Francis Journals, vol. 50(11), pages 1804-1818, November.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:11:p:1804-1818
    DOI: 10.1080/00343404.2015.1072274
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    References listed on IDEAS

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    5. Edoardo Di Porto & Leandro Elia & Cristina Tealdi, 2013. "The "emersion" effect: an ex post and ex ante social program evaluation on labor tax evasion in Italy," Working Papers 2/2013, IMT School for Advanced Studies Lucca, revised Jun 2013.
    6. Tito Boeri & Pietro Garibaldi, "undated". "Shadow Activity and Unemployment in a Depressed Labor Market," Working Papers 177, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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    Cited by:

    1. Facundo Quiroga‐Martínez & Esteban Fernández‐Vázquez, 2021. "Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 177-189, February.
    2. Maciej Beręsewicz & Dagmara Nikulin, 2018. "Informal employment in Poland: an empirical spatial analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(3), pages 338-355, July.
    3. Gustavo A. García & Edgar Julián Muñoz González & Stefany Gallego Ortiz, 2018. "Análisis Espacial de la Informalidad Laboral a Nivel Intra-urbano," Documentos de Trabajo CIEF 16499, Universidad EAFIT.
    4. Alessandro Arrighetti & Eleonora Bartoloni & Fabio Landini & Chiara Pollio, 2019. "Exuberant Proclivity Towards Non-Standard Employment:Evidence from Linked Employer-Employee Data," Working Papers 1905, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    5. Dagmara Nikulin & Ewa Lechman, 2021. "Shadow Economy in Poland: Results of the Survey," SpringerBriefs in Economics, in: Shadow Economy in Poland, chapter 0, pages 49-65, Springer.
    6. Caro, Paolo Di & Sacchi, Agnese, 2020. "The heterogeneous effects of labor informality on VAT revenues: Evidence on a developed country," Journal of Macroeconomics, Elsevier, vol. 63(C).

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