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FT: [The size of the Spanish black economy] helps to explain one of the more embarrassing economic mysteries of modern Spanish society: an extraordinarily high rate of official unemployment without much of the civil unrest and popular anger that such a problem would normally generate. If it were true that 4.9m people, or more than 21 per cent of the workforce, were jobless, Spain would not be as peaceful as, barring a few demonstrations, it has so far been, say economists and business leaders.

It is an open secret that the Spanish jobless rate – double the European average – is a fiction. Hundreds of thousands of people claim unemployment benefit when they actually have some kind of work; millions are not registered as working, which means that neither they nor their employers are paying social security contributions. One proof, say employers, is that when unemployment fell to 8.5 per cent at the height of the boom in 2006-07, they could find no workers to hire. Yet that figure, the recent Spanish minimum, is high enough that it would be associated with a deep economic recession in almost any other industrialised country. [Story]

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hierundjetzt meinte am 13. Apr, 03:11:
"Shadow Economy"?
Nice graphic but what exactly should this shadow economy mean?

Apparantly, the US has astonishing good numbers here. In fact, it has the lowest "dark" rate. I think something is wrong with this presentation... 
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There seems to be a curious symmetry here. Rich people evade tax and criticise the state that supports their income from companies. Poorer people (such as Spain-s Indignados) cheat on welfare and criticise the private firms that pay taxes in their place.

Is anyone suggesting that we have reached a limit of complexity and cost beyond which very few people can afford even to correctly assess the benefits they receive and the funds they give in return to their governments? 
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dalet (guest) meinte am 12. Jan, 22:42:
Another view on the origin of Spanish unemployment figures
I am a Spaniard, and I am always wondering something whenever I hear the commonplace that much of the unemployment rate in Spain responds indeed to shadow economy. There are two sources to measure unemployment in Spain: (a) benefit claimants at SEPE, and (b) workforce polls by INE (then fed to Eurostat). Figures from (a) are consistently lower than those from (b)

I do not deny the size of Spanish black economy. I also understand some benefit claimants would lie and say they are unemployed although they aren't, and their employers would not register them because thus they avoid paying the Social Security, etc. However... how does this explain the data coming from the survey respondents? Which reasons would they have to lie?

[I cannot embed the links to both sources, as my message becomes then classified as spam] 
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