Motivated by the observation that access to evasion opportunities is distributed heterogeneously across the labor market, this paper examines the extent to which labor supply elasticities with respect to tax rates depend on such evasion opportunities. We first discuss the channels through which...

In order to collect the revenue necessary to fund public goods, states are often required to both deter tax evasion and encourage voluntary tax compliance on the part of their citizens. While most prior research has focused on explaining tax evasion with standard economic model parameters, there...