Lemieux, Thomas; Fortin, Bernard; Frechette, Pierre - In: American Economic Review 84 (1994) 1, pp. 231-54
This paper uses micro data from a randomized survey carried out in the metropolitan area of Quebec City, Canada, to analyze the decision to evade taxes and work in the 'underground' economy. The results indicate that taxes distort labor-market activities away from the regular sector to the...