Taxes, social insurance contributions, and undeclared labour in unionized oligopoly
Minas Vlassis (),
Stefanos Mamakis () and
Economics Letters, 2019, vol. 183, issue C, -
This paper studies the phenomenon of undeclared labour. In a unionized duopoly with decentralized wage setting and proportional taxation we show that a trade-off exists for employers between contributing to social insurance for their employees and incurring taxes on labour. The configuration among the tax and social insurance contribution rates may thus generate undeclared labour in equilibrium. Nonetheless, those rates can be handled by a social planner so as to tackle undeclared labour at no cost to social welfare, but with welfare distributive consequences.
Keywords: Undeclared labour; Unionized cournot duopoly; Labour unions (search for similar items in EconPapers)
JEL-codes: J50 J51 L13 E26 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:183:y:2019:i:c:37
Access Statistics for this article
Economics Letters is currently edited by Economics Letters Editorial Office
More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().