Higher inequality reduces capital accumulation and increases the informal economy, which creates additional employment opportunities for low-skilled and deprived people. As a result, informal employment leads to beneficial effects on income distribution by providing sources of income for...

Higher inequality reduces capital accumulation and increases the informal economy, which creates additional employment opportunities for low-skilled and deprived people. Despite this positive feedback, informality raises problems for public finances and biases official statistics, reducing the...

The European economy is characterised by marked regional differences. In this paper we shall propose some direct methods, using variables of the labour market, of economic branches value added to measure such differences and their evolution in time. In the first section we shall analyse regional...