The paper investigates the role of the minimum wage in a competi- tive economy in which there is underreporting of earnings by employed labour. The minimum wage induces higher compliance by some low- productivity workers and transforms a nominally neutral .scal system into a regressive one. A...

Some of the enterprises providing messenger services in Budapest radically decreased their involvement in hidden economy in Summer 2006 which provides for a unique opportunity to study the dynamics of private decisions concerning tax evasion and hidden employment. Through interviews with CEOs of...

This paper examines the interaction between minimum wage legislation and tax evasion by employed labor. I develop a model in which firms and workers may agree to report less than the true amount of earnings to the fiscal authorities. I show that introducing a minimum wage creates a spike in the...

Some of the enterprises providing messenger services in Budapest radically decreased their involvement in hidden economy in Summer 2006 which provides for a unique opportunity to study the dynamics of private decisions concerning tax evasion and hidden employment. Through interviews with CEOs of...

This paper examines the interaction between minimum wage legislation and tax evasion by employed labor. I develop a model in which firms and workers may agree to report less than the true amount of earnings to the fiscal authorities. I show that introducing a minimum wage creates a spike in the...

This paper examines the interaction between minimum wage legislation and tax evasion by employed labor. I develop a model in which firms and workers may agree to report less than the true amount of earnings to the fiscal authorities. I show that introducing a minimum wage creates a spike in the...

The paper investigates the role of the minimum wage in a competitive economy in which there is underreporting of earnings by employed labour. The minimum wage induces higher compliance by some low-productivity workers and transforms a nominally neutral fiscal system into a regressive one. A...

This paper aims to identify the determinants of revenue underreporting and their temporal evolution from a business perspective in formal firms located in an emerging country with high inflation (Argentina). We propose a conceptual model and we estimate it empirically using a logistic regression...

This study develops a method that uses surveys of company managers to measure the size of a shadow economy. Our method is based on the premise that company managers are the most likely to know how much business income and wages go unreported due to their unique position in dealing with both of...

In this paper, first, six micro (4) and macro (2) estimation approaches are briefly described; they are the National Accounts Statistics discrepancy method and two new micro survey methods, a third one using a combination of company manager surveys and their knowledge to calibrate the size of the...