Moral, The Informal Sector, and Unemployment

Ann-Sofie Kolm and Birthe Larsen

Working Papers from Uppsala - Working Paper Series

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.

Keywords: TAX EVASION; WAGES; MORAL; UNEMPLOYMENT (search for similar items in EconPapers)
JEL-codes: H20 H26 J60 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2001
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Working Paper: Moral, the Informal Sector, and Unemployment (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:uppaal:2001:09

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