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The Dark, and Independent, Side of the Italian Labour Market

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  • Maurizio Bovi

Abstract

. This paper presents an empirical investigation of the two faces of the Italian labour market, the dark and the regular. Results from ‘exhaustive’ VAR/VEC models suggest that there are no connections (causal relationships, feedback, contemporaneous correlation) between them. In this sense, we could correctly refer to undeclared work as an ‘independent’ side of the market. I interpret these results as providing empirical support for the ineffectiveness of labour policies in converting black economy employment into regular over the last two decades.

Suggested Citation

  • Maurizio Bovi, 2005. "The Dark, and Independent, Side of the Italian Labour Market," LABOUR, CEIS, vol. 19(4), pages 721-748, December.
    • Handle: RePEc:bla:labour:v:19:y:2005:i:4:p:721-748
    DOI: 10.1111/j.1467-9914.2005.00319.x
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    References listed on IDEAS

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    1. 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.
    2. Giuseppe Bertola & Pietro Garibaldi, 2003. "The Structure and History of Italian Unemployment," CESifo Working Paper Series 907, CESifo.
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    Cited by:

    1. Søndergaard, J., 2023. "Undeclared Danish Labor: Using the labor input method with linked individual-level tax data to estimate undeclared work in Denmark," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 708-730.
    2. 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).
    3. Maurizio Bovi, 2005. "The Cyclical Behaviour of Shadow and Regular Employment," Labor and Demography 0507011, University Library of Munich, Germany.
    4. Simona Monteleone, 2014. "Economia sommersa: ULA irregolari in Italia dal 1980 al 2009," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2014(2), pages 91-123.

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    More about this item

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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