Arbeitspapier

Insiders, Outsiders, and the Underground Economy

This paper considers whether labour market rigidities lead to more underground economic activities. This is suggested by aggregate cross-country data which show that underground economic activities are more strongly correlated with a commonly used index of employment protection than with effective tax rates. A simple theoretical model is constructed to support this finding. The model, contrary to many models of equilibrium unemployment in the literature, also has the feature that a rise in a proportional tax affects employment (in addition to underground economic activities).

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 1048

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Anderberg, Dan
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2003

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Anderberg, Dan
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2003

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