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Gaetano Lisi
 
''The Strange Case of Dr. “Unemployed” and Mr “Hidden” in Italy''
( 2010, Vol. 30 No.4 )
 
 
While the literature is unanimous in considering unemployment and underground employment as strongly connected and interdependent phenomena, the link between existing causality is controversial. This empirical paper aims at clarifying this intricate relationship. Precisely, two key results emerge from the analysis. The first shows that unemployment (positively) influences the underground employment and vice versa. The second demonstrates that the impact of unemployment on underground employment is stronger than the reverse.
 
 
Keywords: underground /hidden /informal /shadow employment (economy), unemployment, models with panel data, simultaneous equations models
JEL: C3 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
 
Manuscript Received : Aug 09 2010 Manuscript Accepted : Oct 28 2010

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