Social capital and undeclared work: an empirical analysis in Italy from 1998 to 2008
The issue of irregular work has been well known in Italy since the early seventies. Undeclared work is a particular facet of shadow economy where employers evade tax typically by underreporting either the numbers of workers or the hours worked or both and, by this mean, they avoid paying the legally due social security contributions. As any form of shadow activity, undeclared work introduces important biases in the economic system. That is why, it is of paramount interest for policy makers to understand which are the factors influencing undeclared work. The Italian National Institute of Statistics has developed a methodology in the vanguard to estimate the rate of irregular work and today we have time series long enough for a review of the phenomenon. When looking at regional rates of irregular work it’s stunning how dissimilar they are and this dissimilarity is kept over time. This paper aims to understand the reasons of this heterogeneous dynamics and to identify it’s determinants, focusing in particular on the role of social capital. We use a dynamic panel model to measure the impact of social capital and of some other relevant variables on regional irregular work rates. We find that social capital ha a significant effect. It reveals itself to be a key factor in hindering the use of irregular workers.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.memotef.uniroma1.it/RePEc/index.html|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alberto Alesina & Paola Giuliano, 2011.
"Family Ties And Political Participation,"
Journal of the European Economic Association,
European Economic Association, vol. 9(5), pages 817-839, October.
- Alberto F. Alesina & Paola Giuliano, 2009. "Family Ties and Political Participation," NBER Working Papers 15415, National Bureau of Economic Research, Inc.
- Alesina, Alberto & Giuliano, Paola, 2009. "Family Ties and Political Participation," IZA Discussion Papers 4150, Institute for the Study of Labor (IZA).
- Benno Torgler, 2003.
"Tax Morale in Asian Countries,"
2003/04, Faculty of Business and Economics - University of Basel.
- Alesina, Alberto & Giuliano, Paola, 2007.
"The Power of the Family,"
IZA Discussion Papers
2750, Institute for the Study of Labor (IZA).
- Benno Torgler & James Alm & Jorge Martinez-Vazquez, 2005.
"Russian Attitudes Toward Paying Taxes – Before, During, and After the Transition,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0518, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- James Alm & Jorge Martinez-Vazque & Benno Torgler, 2006. "Russian attitudes toward paying taxes – before, during, and after the transition," International Journal of Social Economics, Emerald Group Publishing, vol. 33(12), pages 832-857, December.
- James Alm & Jorge Martinez-Vazquez & Benno Torgler, 2005. "Russian Attitudes Toward Paying Taxes ? Before, During, and After the Transition," CREMA Working Paper Series 2005-27, Center for Research in Economics, Management and the Arts (CREMA).
- Benno Torgler, 2003. "Tax Morale and Tax Evasion. Evidence from the United States," Working papers 2003/02, Faculty of Business and Economics - University of Basel.
- repec:rie:review:v:11:y:2006:i:3:n:2 is not listed on IDEAS
- Benno Torgler, 2003.
"Tax Morale in Latin America,"
2003/03, Faculty of Business and Economics - University of Basel.
- David Roodman, 2009.
"How to do xtabond2: An introduction to difference and system GMM in Stata,"
StataCorp LP, vol. 9(1), pages 86-136, March.
- David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
- Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
- Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
- Guido de Blasio & Giorgio Nuzzo, 2005. "Il capitale sociale à la Putnam e le regioni italiane: un'analisi empirica," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2005(1).
- Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988.
"Estimating Vector Autoregressions with Panel Data,"
Econometric Society, vol. 56(6), pages 1371-95, November.
- Tom Doan, . "RATS program to demonstrate IV estimation of VAR in panel data," Statistical Software Components RTZ00185, Boston College Department of Economics.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Degli Antoni Giacomo, 2006. "Capitale sociale e crescita economica: una verifica empirica a livello regionale e provinciale," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 363-394.
- Maurizio Bovi & Laura Castellucci, 2001. "Cosa sappiamo dell'economia sommersa in Italia al di là dei luoghi comuni? Alcune proposizioni empiricamente fondate," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2001(6).
When requesting a correction, please mention this item's handle: RePEc:rsq:wpaper:16/13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (isabella santini)
If references are entirely missing, you can add them using this form.