In this paper I investigate the relationship between unionization and the size of the informal economy. Using a cross-country panel data for 30 countries over the period from 1960 to 2009, I find a strong and robust negative correlation between unionization and the size of the informal economy.

Theoretical models of the informal sector mostly assume—or end up with—a positive correlation between a measure of taxes and the size of the informal sector. However, some recent empirical studies associate higher taxes with a smaller informal sector size. In this paper, we build a...

We will conduct Business Cycle Accounting for the Turkish economy to investigate the sources of economic fluctuations within the framework of a standard neoclassical growth model with time-varying wedges across the last four decades. We will then compare the relative importance of different...