Doligalski, Paweł; Rojas, Luis E. - In: Theoretical economics : TE ; an open access journal in … 18 (2023) 2, pp. 749-791
We extend the theory of optimal redistributive taxation to economies with an informal sector. In particular, in our … model, workers can supply labor simultaneously to the formal and the informal sectors, which we call moonlighting. The … medium income levels, while the possibility of moonlighting is relevant at higher earnings. …
