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Immigration, amnesties and the shadow economy

Emanuele Bracco and Luisanna Onnis ()

No 108263550, Working Papers from Lancaster University Management School, Economics Department

Abstract: This paper investigates the effects of immigration and immigration amnesties on the shadow economy. We find a robust and positive relationship between the presence of immigrants and the unobserved economic activity at the local level, but the implementation of a large immigration amnesty substantially weakens this link. Our analysis exploits newly compiled datasets of Italian immigration and shadow economy estimates for the years 1995-2006, comprising a panel of local-level aggregate statistical information, and a micro-level survey of representative households. We exploit the discontinuity created by the 2002 immigration amnesty, which increased the stock of migrants by almost 50%.

Keywords: Shadow Economy; immigration; Immigration policies; Amnesties (search for similar items in EconPapers)
JEL-codes: H26 J61 K37 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eur, nep-int, nep-iue, nep-lab and nep-mig
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Journal Article: Immigration, amnesties, and the shadow economy (2022) Downloads
Working Paper: Immigration, Amnesties and the Shadow Economy (2015) Downloads
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