Spain's Underground Economy

04MADRID2418
A 2004 study conducted by Friedrich Schneider shows that approximately 23% of the total GDP of Spain comes from the so called "underground" or under the table economy. Most of the activity is mostly concentrated in the sectors of work that involve little education, such as service, agriculture and construction. According to the study, high labor costs and the large population of illegal immigrants from North Africa and Latin American have contributed to the rise of these economies. In addition, these economies are also losing potential tax revenue for the country and skewing unemployment statistics.