What is grey market, with some figures from Italy

1. Grey labour market in Italy
Rome - 12 December 2017

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The Grey Labour Market (GLM)
 Illegal workforce in Italy
 How much grey is grey market?
 GLM impacts on economy

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White economy

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UnObserved Economy (UOE)
 shadow economy
 illegal economy

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2015 Italy’s GDP
1485 Total GDP
190 Shadow economy
(in billions of euro)

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How much are shadow workers ?
(2014)
13,3% of the
employed

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Why do they sign a shadow work contract ?

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When immigration becomes illegal ?

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Grey workers are weak workers
Skills shortage
Primary needs
Illegal status

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Grey jobs are risky jobs

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Immigration and labour market
 Population structure
 Work and skills
 National legislation

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Do immigrants want to stay illegal ?

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In many cases, the only way to find a job

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Shadow labour market
Caporalato
Garzone
Mondina
National
Structural
Economic component

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Shadow labour geography (2012)
In 2015, the number of
irregular work units is
almost 4 million,
increasing over the
previous year.
The rate of irregularity is
15.9%

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Shadow labour by economic sector
Irregularity rates, higher
in traditional sectors
- Agriculture
- Constructions
-.Catering and services

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Consequences 1: Workers
Affects workers with
the lowest wages,
whether they are
legal immigrants or
nationals, and
contributes to
undermining the
benefits they have
gained.

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Consequences 2: Firms
Small unefficient
firms stay alive and
reduce opportunities
for efficient ones

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Consequences 3: Commons
Shadow economic activities use public goods
without accomplish all the requested
contributions (fiscal and social contributions),
and undermine them in the long run.

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We have seen that shadow / grey labour market is
Relevant, greater then black market
A structural component of national economy
An opportunity for illegal immigrants
A harmful element for workers, firms and public goods

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And immigration is an opportunity for our economy

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Credits
2012 rate of irregularity chart from this paper: Cecilia Morvillo, 2016
““EVOLUZIONE DELLE DETERMINANTI DELL'ECONOMIA SOMMERSA:
ANALISI PANEL DI REGIONI ITALIANE”
Figures from ISTAT official publications
All other pictures are mine, or from public domain as far as I know. If you feel
hurt from any unintentional missing attribution of autorship, please let me know
so I will modify this presentation.

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Antonio Pandolfi
6ant8@twitter.com
www.linkedin.com/in/apandolfi