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

IZA Journal of Development and Migration, 2022, vol. 13, issue 1, 19

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

Keywords: refugees; underground economy; implications; European Union (search for similar items in EconPapers)
JEL-codes: C23 F22 O17 (search for similar items in EconPapers)
Date: 2022
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Working Paper: The role of refugees in the underground economy of the European Union (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:izajdm:v:13:y:2022:i:1:p:19:n:2

DOI: 10.2478/izajodm-2022-0002

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