Illegal immigration and the underground economy

Abstract

This paper looks at problems facing Southern European countries with high levels of illegal immigration and a firmly established underground economy. It will address questions about who the immigrants are and what attracts them to the area. The paper will also provide a broad outline of how the general employment situation in Southern Europe, while addressing problems associated with its long established underground economy. It argues that the issue of illegal immigration cannot be addressed without recognising the complexities of their current economic situation. The underground economy is having three important negative effects on migrants. 1. Most migrants, including those who hold legal status, are only able to find un regulated (underground) jobs. 2. Working predominantly in the underground economy and living without the necessary documents had contributed to the stigmatisation of migrants. 3. Many migrants have been pushed to commit a crime either because models of deviant behaviour replaced the old myth of social climbing thanks to either working hard or the underground economy, which gives migrants the idea that regulation is largely unsuccessful. This has led to a need to extend tighter control of external borders. However, as this document points out, this time would be better spent on addressing the problems associated with the underground economy. Southern European countries have to come to terms with the fact that high unemployment can exist along side an unfulfilled demand for low skilled workers in low paid jobs. Borders have to be opened up to allow workers to fill these low-skilled, low-paid jobs, but this movement will have to be well regulated. The size of the underground economy must be reduced over time which requires these countries have to start focusing on tightening social control.