Cuff, Katherine; Marceau, Nicolas; Mongrain, Steeve; … - In: Journal of Public Economics 95 (2011) 11, pp. 1280-1291
This paper characterizes optimal policies in the presence of tax evasion and undocumented workers. In equilibrium, domestic workers may work exclusively in the formal sector or also in the informal sector. Surprisingly, in equilibrium, wages are always equalized between domestic and undocumented...