In this paper we investigate the effects of different fiscal policies on the firm choice to produce underground. We consider a tax evading firm operating simultaneously both in the regular and in the underground economy. We suggest that such a kind of firm, referred to as moonlighting firm, is...

The research deals with the characteristics of the irregular labour. Current literature considers that irregular labour arises because of the heavy tax burden on labour, or because of the existence of regulations which impose too many constraints on the labour market. In Italy the labour market...