This paper studies the impact of informality on the long-run relationship between inflation and unemployment in … money and credit coexist. An increase in inflation affects unemployment through two channels: the matching channel and the … unemployment. On the other hand, the lower impact of inflation on formal transactions where credit is partially available shifts …

This paper studies the effects and causal links between the shadow economy and the unemployment rate using a dynamic … suggests that there is a unidirectional and negative causality running from the unemployment rate to the shadow economy in the … shadow economy and unemployment rate. The sensitivity of the results makes the authors realize that institutional quality …

A matching model will explain both unemployment and economic growth by considering the underground sector. Three … between underground employment and unemployment, and (iii) between growth and unemployment. The key assumptions adopted are … underground firms, employ unskilled labour, and do not contribute to growth. Underground employment alleviates unemployment only …