Economic growth and unemployment exhibit an ambiguous relationship – according to empirical studies. This ambiguity can be investigated by observing the role of the underground economy in shaping the productivity of firms. Indeed, unemployment may be absorbed by underground firms, which adopt...

A matching model will explain both unemployment and economic growth by considering the underground sector. Three problems can thus be simultaneously accounted for: (i) the persistence of underground economy, (ii) the ambiguous relationships between underground employment and unemployment, and...

A main purpose of my contribution is to provide a constructive critique of the present organisation of European economies under liberalisation and globalisation. Contrary to the exaggerated claims in leading economic circles about the virtues of this economic regime, its actual record has been...

A serious blemish of the present economic era is the high rates of unemployment which currently afflict developed countries. Unemployment has reached high levels in several European countries as the following figures suggest. It is nearly 10% of the labour force in France, 24.5% in Greece, 15.3%...