Underground Activities and Labour Market Performance

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Underground Activities and Labour Market Performance

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dc.contributor.author Kolm, Ann-Sofie
dc.contributor.author Larsen, Birthe
dc.date.accessioned 2018-01-25T12:33:25Z
dc.date.available 2018-01-25T12:33:25Z
dc.date.issued 2018-01-25
dc.identifier.uri http://hdl.handle.net/10398/9588
dc.description.abstract We build a general equilibrium model in terms of a search and matching model with an informal sector. We consider the impact of the traditional policy instruments considered in the tax evasion literature, such as changes in the tax- and punishment system as well as changes in the employment protection legislation and concealment costs, on labour market outcomes. To this end, we set-up a model which allows workers to allocate their search for formal and informal sector jobs optimally. We calibrate and simulate the model to fit the North and the South of Europe, where the share of informal sector workers is equal to three percent in the North and more than 4 times as high in the South. We consider the impact of concealment costs, as there are large differences in terms of tax administration procedures between the South and the North, in terms of that Northern countries make more extensively use of third-party reporting. We also examine whether stricter employment protection legislation in Southern Europe may explain the observed fact. en_US
dc.format.extent 29 en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;1-2018
dc.title Underground Activities and Labour Market Performance en_US
dc.type wp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.publisher.city Frederiksberg en_US
dc.publisher.year 2018 en_US


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