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Underground business

Due to the political, legislative, and social power of many guilds during the medieval and early modern periods, any economic activity that encroached on guild purview was considered criminal activity. The black market was used to get around regulations set by the guild for membership, for the goods they produced, and to circumvent expensive fees and taxes that may be imposed by governments. Illegal work did not pass unnoticed by authorities at the time, and are documented by police reports and guild complaints. Guild officers were able to arrest people who were working in the trade without guild credentials, and could use municipal law enforcement to aid them in the arrest. Guilds often did take people to court for illegal work. In 18th c. Lyon, about half of the defendants were men, and half were women. Daryl Hafter notes that many of the female defendants were practicing trades where they were either completely barred from guild membership, or had austere restrictions within the guild. As joining a guild was expensive, this explains why poorer men would turn to illicit craft. Clandestine artisans were seen as a severe encroachment on guild rights, liberties, and exclusivity. Many guilds feared that this would affect economic stability.

In Paris, the Barber-Wigmaker & Bath Provider Guild struggled against illicit wigmaking and styling. In this case, illicit wigmaking flourished in order to circumvent the expensive wig tax. Women and girls could enter this guild. Illicit wigmakers operated throughout the 18th c., and made continuous contributions to the industry.

Judith Coffin posits that the number of clandestine linen drapers, seamstresses, and tailors, kept pace and probably outstripped the numbers from those guilds. Clandestine workers, male and female, worked in garret shops and rooms under guild jurisdiction. Not all non-guild work was illegal, too. A non-guild artisan could work directly for the crown, or in the "free zones" that were beyond the reach of the guild officers. Clandestine workers in the needle trade were often employed by larger merchant manufacturers. Guild members were also enmeshed in illegal labor, either carrying it out, or hiring those who did illegal work. Nearly everyone was in violation of guild statutes. Masters of the guild would often hire illegal workers to do specific and low-paying parts of the job. In the case of the Wigmakers, it was hair-weaving, the most labor-intensive aspect of the craft. Hair weavers arranged pinches of hair side by side and interlaced them in intricate patterns between six silk threads extended on two wooden rods. Women called tresseuses seemed to perform a substantial amount of this work outside masters' shops.

Despite the guilds' fear of illegal craft, underground business often helped guilds survive. The creation of materials was often illicit, or outsourced from other locales. Masters hired non-guild workers to do high-intensive tasks and paid less, while at the same time denigrating their work. In many cities, guild masters purchased discounted materials and hired cheap labor to reduce costs. In Lyon, the underground silk economy thrived, and was a significant portion of the economy. It was made up of mostly female artisans whose work paralleled that of the legitimate trade. The female artisans were important to the guild as they were highly skilled in craft procedures that the guild heavily relied upon, and were essential to production. But they also worked for male entrepreneurs outside of the guild and frequently collaborated with each other to set up their own businesses. In an effort to curb this illicit activity, guildmasters wrote bylaws forbidding men and women to work outside of the guild. The buttonmakers guild of Lyon also complained about illicit work and theft from the non-guild female workers whom they hired. They also took it upon themselves to teach girls the buttonmaking trade, which was the real problem, as their instruction imparted the "mystery" of guild secrets to non-guild members which undermined the guild.

In the mid-17th c., Lübeck experienced political conflicts as guilds petitioned the councils to ban clandestine work not only in the city but in rural areas. They were outraged that members of the upperclass in Lübeck would employ rural craftsmen at the expense of the city guild. A lot of their anger spurred from the fact that they were part of the council who had sworn to uphold the guild.

Early modern Lyon continued to have a thriving underground economy into the late 18th century. In 1780, the hatters' guild complained that women and girls who sheared skins for the industry had established an underground manufacture 25 years earlier, and that it was still sustained. These women were the wives of hatters or girls who were hired day by day, and who were not content to be so dependent on the guild. The women were accused of theft of materials, buying stolen materials for cheap, and selling them for larger amounts. What was most surprising was the response from the government, which had previously always stood with guilds even at the economy's expense. A royal edict of 1777 formed a corps of these female workers, giving them legitimacy.