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

Author

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  • Maurizio Bovi

    (Institute for Studies & Economic Analyses ISAE)

Abstract

In 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.

Suggested Citation

  • Maurizio Bovi, 2005. "The Dark, and Independent, Side of the Italian Labour Market," Labor and Demography 0504003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0504003
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    References listed on IDEAS

    as
    1. Giuseppe Bertola & Pietro Garibaldi, 2003. "The Structure and History of Italian Unemployment," CESifo Working Paper Series 907, CESifo.
    2. 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. Maurizio Bovi, 2005. "The Cyclical Behaviour of Shadow and Regular Employment," Labor and Demography 0507011, University Library of Munich, Germany.
    2. Simona Monteleone, 2014. "Economia sommersa: ULA irregolari in Italia dal 1980 al 2009," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2014(2), pages 91-123.
    3. 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).
    4. 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.

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    More about this item

    Keywords

    Underground economy; VAR models; Dual labour market.;
    All these keywords.

    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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