Underground Employment and Unions. Is there a Relationship? Evidence for Italy

Publication type

Conference Paper


Joint Empirical Social Science Seminar


Publication date

October 25, 2006


In this paper we have investigated the nature of the relation between underground employment and unions, starting from a very simple intuition, that is the hypothesis of the existence of two different and opposite channels through which unions affect underground employment. The econometric investigation with Italian data has confirmed this intuition, pointing out two main results. The presence of unions generates shadow activities via higher wages and market rigidities. By contrast, the relationship between union strength and the hidden economy may turn out to be negative when considering regression based on sectorial or industry data, even though it is not uniform among economic sectors.



Latest findings, new research

Publications search

Search all research by subject and author


Researchers discuss their findings and what they mean for society


Background and context, methods and data, aims and outputs


Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report


Key research themes and areas of interest