On the Economic Implications of the Italian Tax System on the Nature and Dimensions of Undeclared Work

The subject of the presentation were the economic implications of the tax system on the nature and dimensions of undeclared work. In the first part of it, in particular, was considered the complexity and heterogeneity of the phenomenon, are examined the definitions and classifications used (very often in a non-univocal way) to describe it, as well as its current degree of diffusion, both spatially (sectorally and territorial) and temporal (past trends and recent developments), and its causes or determinants. The second part reviewed the strategies and measures implemented over the last forty years to contrast undeclared work, distinguishing them on the basis of their nature (direct and indirect) and the approach (contractual and fiscal) adopted. The third part was dedicated, instead, to the analysis of the effects of the tax reforms that have changed the discipline of personal income tax (IRPEF) and value added taxes applied in Italy (IVA and IRAP), with the aim of reducing the so-called "tax wedge on labour" and, in general, incentives for tax evasion and undeclared work.