Foreign Ownership and Labor Tax Evasion: Evidence from Latvia

Nicolas Gavoille and Anna Zasova ()
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Anna Zasova: Baltic International Centre for Economic Policy Studies (BICEPS)

No 8, SSE Riga/BICEPS Research Papers from Baltic International Centre for Economic Policy Studies (BICEPS), Stockholm School of Economics in Riga (SSE Riga)

Abstract: This paper shows that in a context of widespread labor tax evasion, employees of foreign-owned firms receive less undeclared cash payments than employees of domestic firms. The empirical analysis relies on a combination of administrative and survey data and implements an expenditure-based underreporting analysis a la Pissarides and Weber (1989). This provides an alternative explanation for the wage premium for employees of foreign-owned firms observed in similar environments.

Pages: 15 pages
Date: 2021-11
New Economics Papers: this item is included in nep-iue, nep-pbe and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: Foreign ownership and labor tax evasion: Evidence from Latvia (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:bic:rpaper:8

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