Leth-Petersen, Søren; Skov, Peer Ebbesen - Rockwool Fondens Forskningsenhed (RFF) - 2014
This paper measures the effect of changing the marginal tax rate on earned income on the supply of labor to the informal sector with the purpose of evading taxation. Unlike any previous study, we do this by directly measuring the effect of a Danish 2010 tax reform that changed the marginal rate...