The paper empirically tests the relationship between underground labour and schooling achievement for Italy; a country ranking badly in both respects when compared to other high-income economies; with a marked duality between North and South. In order to identify underground workers; we exploit...

A political-economic model is provided to study the impact of low-skilled immigration on the receiving country's education system, in terms of sources of school funding, expenditure per pupil, and type of parents who are more likely to send children to privately funded schools. The education...