This paper studies labour market tax avoidance in the 2010s in Hungary, following major labour market tax reforms in the beginning of the decade. First we show that aggregate time series are broadly consistent with a "whitening" process, in which a higher fraction of incomes are declared....

Third-party reporting and employers' tax withholding are powerful compliance mechanisms, as long as the employer and employee do not collude to evade. Using data from randomly assigned on-site audits among 2,462 Norwegian firms, we provide evidence of collusive tax evasion. We find that firms...

The interactions between minimum wage policy and tax evasion remain largely unknown. We study firm-level employment effects of a large and bit- ing minimum wage increase in the context of widespread wage underreport- ing. We apply machine learning to classify firms between tax-compliant and...