Tax Evasion and Work in the Underground Sector
A bivariate random effect panel data model is estimated for labour supply in the taxable and the non-taxable sectors in Denmark. The results show that wage rates and non-labour income have significant effects on labour supply in both sectors. For men, income taxes seem to twist the labour supply away from taxed regular to untaxed underground supply. For men, the average own wage elasticity with respect to underground labour supply is 0.3 while the cross price elasticity from wages is -0.6 and the income elasticity is -0.1. For women the results are more mixed.
|Date of creation:||27 Jun 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +45 89 48 66 88
Fax: + 45 86 15 01 88
Web page: http://www.cls.dk
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Graversen, E.K. & Smith, N., 1998. "Labour Supply, Overtime Work and Taxation in Denmark," Papers 98-06, Centre for Labour Market and Social Research, Danmark-.
- Frederiksen, Anders & Graversen, Ebbe Krogh & Smith, Nina, 2001.
"Overtime work, dual job holding and taxation,"
01-7, University of Aarhus, Aarhus School of Business, Department of Economics.
- Frederiksen, Anders & Graversen, Ebbe K. & Smith, Nina, 2001. "Overtime Work, Dual Job Holding and Taxation," IZA Discussion Papers 323, Institute for the Study of Labor (IZA).
- Frederiksen, A. & Graversen, E.K. & Smith, N., 2001. "Overtime Work, Dual Job Holding and Taxation," Papers 01-7, Aarhus School of Business - Department of Economics.
- van Eck, Robert & Kazemier, Brugt, 1988. "Features of the Hidden Economy in the Netherlands," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(3), pages 251-73, September.
- Cowell, Frank A., 1985. "Tax evasion with labour income," Journal of Public Economics, Elsevier, vol. 26(1), pages 19-34, February.
- Friedrich Schneider & Dominik Enste, 1999.
"Shadow Economies Around the World - Size, Causes, and Consequences,"
CESifo Working Paper Series
196, CESifo Group Munich.
- Friedrich Schneider & Dominik Enste, 2000. "Shadow Economies Around the World; Size, Causes, and Consequences," IMF Working Papers 00/26, International Monetary Fund.
- Lacroix, G. & Fortin, B., 1991.
"Utility-Based Estimation of Labor Supply Functions in the Regular and Irregular Sectors,"
Cahiers de recherche
9020, Université Laval - Département d'économique.
- Lacroix, Guy & Fortin, Bernard, 1992. "Utility-Based Estimation of Labour Supply Functions in the Regular and Irregular Sectors," Economic Journal, Royal Economic Society, vol. 102(415), pages 1407-22, November.
- Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
- 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.
- Fortin, N.M., 1992.
"Allocation Inflexibilities , Female Labor Supply and Housing Assets Accumulation: Are Women Working to Pay the Mortagage,"
Cahiers de recherche
9204, Universite de Montreal, Departement de sciences economiques.
- Fortin, Nicole M, 1995. "Allocation Inflexibilities, Female Labor Supply, and Housing Assets Accumulation: Are Women Working to Pay the Mortgage?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 524-57, July.
- Fortin, N.M., 1992. "Allocation Inflexibilities , Female Labor Supply and Housing Assets Accumulation: Are Women Working to Pay the Mortagage," Cahiers de recherche 9204, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Fortin, B. & Lemieux, T. & Frechette, P., 1990.
"An Empirical Model Of Labor Supply In The Underground Economy.,"
9005, Laval - Recherche en Politique Economique.
- Bernard Fortin & Thomas Lemieux & Pierre Frechette, 1990. "An Empirical Model of Labor Supply in the Underground Economy," NBER Working Papers 3392, National Bureau of Economic Research, Inc.
- Frank A. Cowell, 1990. "Cheating the Government: The Economics of Evasion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532484, August.
- Lemieux, Thomas & Fortin, Bernard & Frechette, Pierre, 1994. "The Effect of Taxes on Labor Supply in the Underground Economy," American Economic Review, American Economic Association, vol. 84(1), pages 231-54, March.
- Hausman, Jerry & Ruud, Paul, 1984.
"Family Labor Supply with Taxes,"
American Economic Review,
American Economic Association, vol. 74(2), pages 242-48, May.
- Namkee Ahn & Sara La De Rica, 1997. "The underground economy in Spain: an alternative to unemployment?," Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 733-743.
When requesting a correction, please mention this item's handle: RePEc:hhs:aarcls:2001_002. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt)
If references are entirely missing, you can add them using this form.