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assess the quantitative effect of incomplete tax enforcement on aggregate output and productivity using a dynamic general … improvements. Under complete enforcement, labor productivity and output would be 19% higher under perfect competition and 34 …
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Recently, there has been growing recognition that some formal employees receive from their formal employers two wages, namely an official declared wage plus an additional undeclared (envelope) wage, which reduces the tax and social contributions paid to the authorities. The aim of this paper is...
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This paper evaluates the relative importance of labor productivity vs. income taxes and social security contributions … evasion. The quantitative model takes as inputs the income tax structure and the estimated aggregate productivity series. The … out that the most important factor is labor productivity, followed by the corporate tax. Income tax progressivity in …
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