Minimum wage and tax evasion: theory and evidence
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 dist...
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| Format: | Article |
| Language: | English |
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2011-12.
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| Online Access: | Get fulltext |