The Impact of Unemployment Rate on the Dimension of Shadow Economy in Spain: A Structural Equation Approach

Ion Dobre and Adriana AnaMaria Alexandru

European Research Studies Journal, 2009, vol. XII, issue 4, 179-197

Abstract: The paper uses annual data for the period 1970-2007 in order to estimate the size of Spanish shadow economy. In view to do so, the shadow economy is modelled like a latent variable using the structural equation model(SEM). The model includes tax burden, social benefits, subsidies, government employment, self-employment and unemployment rate as main causes of shadow economy and the results indicates that the size of informal sector oscillates between 22% and 18% of GDP in the last ten years. Investigating the relationship between the shadow economy and unemployment rate a positive relationship is marked out between this two variables.

Keywords: Shadow economy; MIMIC mode; unemployment rate (search for similar items in EconPapers)
JEL-codes: C22 E26 O17 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.ersj.eu/repec/ers/papers/09_4_p14.pdf (application/pdf)

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:ers:journl:v:xii:y:2009:i:4:p:179-197

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().