This paper develops a labour market matching model in order to address the problem of the persistence of the hidden sector and of its regional concentration, as in Italy and in the enlarged Europe. The main novel features of the model are that entrepreneurial ability affects job productivity,...

This paper develops a standard matching model to address the problem of the hidden sector (including non-registered firms but producing for legal markets), as it is characterised in Italy, i.e. framed in a rather advanced economic and institutional setting, but also linked to the socio-economic...

This paper develops a labour market matching model in order to address the problem of the persistence of the hidden sector and of its regional concentration, as in Italy and in the enlarged Europe. The main novel features of the model are that entrepreneurial ability affects job productivity,...

We review existing estimates of the size of the Spanish underground economy, apply the Ahumada et al. (Rev Income Wealth 53(2):363–371, <CitationRef CitationID="CR3">2007</CitationRef>) correction procedure to some of them and calculate the size of the underground economy in Spain for the period 1960–2009 by using the...</citationref>

Based on the Ahumada et al. (2007, Review of Income and Wealth) critique we revise existing estimates of the size of the German underground economy. Among other things, it turns out that most of these estimates are untenable and that the tax pressure induced size of the German underground...

Relying on the non-negligible role played by the underground economy in the labour market fluctuations, this paper extends the standard matching model à la Mortensen-Pissarides by introducing an underground sector along with an endogenous sector choice for both entrepreneurs and workers. These...