Underground Activities and Labour Market Performance

Arbeitspapier

This paper develops a general equilibrium search and matching model where an underground economy co-exists along with the formal part of the economy. In analyzing how tax and punishment policies a¤ect labour market performance, we nd that punishment of infor- mal sector activities induce workers and rms to reallocate towards the formal sector. However, more importantly, we nd that this real- location tends to improve e¢ ciency in search, reduce the overall wage pressure, and reduce actual unemployment.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working paper ; No. 5-2010

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Tax Evasion and Avoidance ; Unemployment: Models, Duration, Incidence, and Job Search
• Thema: Tax evasion ; Underground economy ; matching ; unemployment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Larsen, Birthe ; Kolm, Ann-Sofie
• Ereignis: Veröffentlichung
• (wer): Copenhagen Business School (CBS), Department of Economics
• (wo): Frederiksberg
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/208565
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ