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Moral, The Informal Sector, and Unemployment

Author

Listed:
  • Kolm, A.S.
  • Larsen, B.

Abstract

While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a two-sector general equilibrium model featuring matching frictions, and heterogeneous workers in terms of moral. This facilitates an analysis of how wage setting and unemployment is affected by punishment policies, which is ignored in the previous literature.

Suggested Citation

  • Kolm, A.S. & Larsen, B., 2001. "Moral, The Informal Sector, and Unemployment," Papers 2001:09, Uppsala - Working Paper Series.
  • Handle: RePEc:fth:uppaal:2001:09
    as

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    References listed on IDEAS

    as
    1. Slemrod, Joel & Yitzhaki, Shlomo, 2002. "Tax avoidance, evasion, and administration," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 22, pages 1423-1470 Elsevier.
    2. Kolm, Ann-Sofie & Larsen, Birthe, 2001. "Moral Costs, The Informal Sector And Unemployment," Working Papers 01-2001, Copenhagen Business School, Department of Economics.
    3. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
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    Cited by:

    1. Luigi Bonaventura, 2011. "Enforcement of regulation, irregular sector, and firm performance: a computational agent-based model," Netnomics, Springer, vol. 12(2), pages 99-113, July.

    More about this item

    Keywords

    TAX EVASION ; WAGES ; MORAL ; UNEMPLOYMENT;

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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