Shadow employment may follow from two main labour market failures. In the first, official market labour taxation distortions make it ineffective for some agents to engage in registered employment due to a tax wedge, which makes the revenues from unofficial employment higher than the...

Unregistered employment poses two types of challenges to the researchers: (i) reliably evaluating the wage differential between formally and informally employed and (ii) accounting for the push and pull factors in general and the effects of business cycle in particular. We address the former...

There are controversies regarding existing estimates of the size of shadow economy in Poland. Therefore this paper focuses on the measurement of shadow economy in Poland over the period 1995–2007. On the basis of monetary methods, an econometric model for currency demand is built. Using...