Shadow Employment and Labor Productivity Dynamics

Maurizio Bovi ()

LABOUR, 2007, vol. 21, issue 4‐5, 735-761

Abstract: Abstract. This paper offers theoretical and empirical insights on the anecdotal ‘buffer hypothesis’, i.e. the view that the shadow employment functions as an improper tool for increasing the labor market flexibility. Official data for Italy support the premise. Although the contemporaneous correlation between Hodrick–Prescott‐detrended shadow labor and output is positive and significant, as time passes their association looses momentum. The opposite is found for the regular employees. Because of their lower productivity level, the cyclical response of the hidden workers affects the short‐term profile of the overall labor productivity. It adds new hints on the still puzzling 1990s productivity dynamics.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9914.2007.00384.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:labour:v:21:y:2007:i:4-5:p:735-761

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1121-7081

Access Statistics for this article

LABOUR is currently edited by Franco Peracchi

More articles in LABOUR from CEIS Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().