Question

Explain (in detail) what the underground economy is. Have you ever held a job that could be considered part of the underground economy? If so, what would that job have been and do you believe that this is a detriment to the overall job market?

Answer 1

Underground economy or black economy or shadow economy or parallel economy are names given to the part of the economy whose GDP is not reported and hence not taxed. These include illegal activities and tacit transaction of goods and services not reported to the government. These include services from babysitting to the sale of narcotics.

No, I never held such job. Such jobs are detrimental to overall job market because first of all, it decreases labor supply and also weaken the bargaining power of legal labor.