. The most important factors driving the shadow economy are indirect taxation and unemployment. Analyzing the interaction …

globe. A robust finding in these studies is the positive association between unemployment rates and the size of the … unemployment that features decreasing returns to unofficial activities and congestion effects in job searching, we conjecture a … long-run equilibrium relationship between unemployment and the size of the shadow economy. Our empirical model lends strong …

rise, increase the shadow economy, but also other factors like economic ones (unemployment) are considered, too …. Specifically it is shown that the main driving forces are unemployment, self-employment and the tax burden, which have different … by self-employment (22.2%), unemployment (16.9%), personal income taxes (13.1%) and tax morale (9.5%). -- shadow economy …

incentives as it reduces the attractiveness of remaining a low-educated worker. However, unemployment also increases …