This paper combines a macroeconomic framework and a microeconomic analysis to estimate the effects of tax policies on the interaction between the hidden economy and the official economy in the Netherlands. Simulation results show that general tax policies of the government have little influence...

In this paper the relevance of the insider-outsider theory is investigated for the Netherlands. Estimation results of a macro wage equation show that the insider-outsider distinction has some empirical relevance, because the pay-off rate has a significant negative influence on wages. However,...