factors driving the shadow economy are unemployment and taxation. Analyzing the interaction between shadow and official …

facilitates an analysis of how wage setting and unemployment is affected by punishment policies, which is ignored in the previous …

both sectors, and (iii) reduces the unemployment rate. The effect of a higher audit rate is less clear. We find that a … ambiguous impact on unemployment and real wages. …

A matching model will explain both unemployment and economic growth by considering the underground sector and human … ambiguous relationships between underground employment and unemployment, and (iii) between growth and unemployment. Key … low, underground employment alleviates unemployment, but the economy grows at lower rates. …

unemployment. A higher audit rate has an ambiguous impact on unemployment, and may actually increase the size of the underground …

facilitates an analysis of how wage setting and unemployment is affected by punishment policies, which is ignored in the previous …