The Dark, and Independent, Side of the Italian Labour Market
AbstractIn many countries the shadow employment has a very high priority among policymakers. A new time series for this component of the labour market has been recently released by the Italian institute of statistics. Taken together they give the motivation and the occasion for a fresh analysis of the Italian labour market over the last two decades. The aim and the contribution of this paper is to highlight some stylised facts about the links between the two sides of the labour market, the dark and the regular. Results from “exhaustive” VAR/VEC models suggest that there are no connections (causal relationships, feedbacks, contemporaneous correlation) between these two time series. In this sense, we could correctly refer to the undeclared work as an “independent” side of the Italian labour market. I interpret these results as providing empirical support for the ineffectiveness of labour policies in converting black employment into regular one.
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Bibliographic InfoPaper provided by EconWPA in its series Labor and Demography with number 0504003.
Date of creation: 12 Apr 2005
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Underground economy; VAR models; Dual labour market.;
Other versions of this item:
- Maurizio Bovi, 2005. "The Dark, and Independent, Side of the Italian Labour Market," LABOUR, CEIS, vol. 19(4), pages 721-748, December.
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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- Maurizio Bovi, 2007. "National accounts, fiscal rules and fiscal policy. Mind the hidden gaps," ISAE Working Papers 76, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
- Maurizio Bovi, 2005.
"The Cyclical Behaviour of Shadow and Regular Employment,"
Labor and Demography
- Maurizio Bovi, 2006. "The Cyclical Behavior of Shadow and Regular Employment," ISAE Working Papers 62, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
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