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The role of refugees in the underground economy of the European Union

Mihai Mutascu and Scott Hegerty

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Abstract: Abstract This paper explores the impact of refugees on the size of the underground economy in 28 European Union countries over the period from 1998 to 2017. It applies a nonlinear methodology by employing dynamic panel threshold estimations. The main findings uncover a nonlinear connection between refugees and the informal economy with an inverted V-shape and a different magnitude of effects depending on the share of the refugee population. The underground economy is stimulated at a low level of refugee inflows (where immigrants make up

Date: 2022-01-01
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Published in IZA Journal of Development and Migration, 2022, 13 (1), ⟨10.2478/izajodm-2022-0002⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03858127

DOI: 10.2478/izajodm-2022-0002

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