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- W1521894363 abstract "SintesiEconomic theory is paying increasing attention to non-observed economy(NOE) and its causes. Recently, a couple of works (Rosser et al. 2000,Rosser et al. 2003) have claimed that there is a positive relationship betweenincome inequality and the size of NOE. This supposed relationship is not soclear and deserves in-depth analysis. There is a crucial aspect that has beencompletely avoided in these studies: income inequality is mainly measuredusing regular incomes and this fact could lead to some bias. The existenceof a certain size of NOE implies some income evasion which can afiect theinequality indexes used in the study of the relationship between NOE andinequality. Including the regional share of NOE in a wage equation I flndthat, in the speciflc case of the Italian private sector employees, the incomeevasion attached to NOE tends to reduce inequality measured by regularwages statistics.JEL Class.: I3, H26Keywords: Underground Economy, Tax Evasion, InequalityIndirizzo: Dipartimento di EconomiaUniversitµa Politecnica delle MarcheE-mail: e.valentini@univpm.it" @default.
- W1521894363 created "2016-06-24" @default.
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- W1521894363 date "2007-04-01" @default.
- W1521894363 modified "2023-09-27" @default.
- W1521894363 title "Inequality and Underground Economy: A Not so Easy Relationship" @default.
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