The Hidden Economy: The Labor Market and Tax Evasion

Arne Jon Isachsen and Steinar Strøm ()
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Arne Jon Isachsen: Norwegian Institute of International Affairs

A chapter in Unemployment, 1981, pp 176-183 from Palgrave Macmillan

Abstract: Abstract When the option of tax evasion is included in the individual’s labor supply decisions, it is shown how the labor market is divided into an irregular and an official market. The impact of changes in tax rates, wage rates and the probability of being caught on the supply of labor in these two markets of the economy is calculated.

Keywords: Labor Market; Labor Supply; Wage Rate; Total Supply; Register Labor Market (search for similar items in EconPapers)
Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-05966-9_12

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DOI: 10.1007/978-1-349-05966-9_12

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