Treasure Islands, Real Jobs? Workers and Anti-Avoidance Policies in a Tax Paradise

Sonia Cabral (), Joana Garcia (), Raquel Miranda (), Susana Peralta () and João Pereira dos Santos
Additional contact information
Joana Garcia: Banco de Portugal - Banco de Portugal, Universidade No minho
Raquel Miranda: Banco de Portugal - Banco de Portugal
Susana Peralta: NOVA SBE - NOVA - School of Business and Economics - NOVA - Universidade Nova de Lisboa = NOVA University Lisbon
João Pereira dos Santos: QMUL - Queen Mary University of London, ULISBOA - Universidade de Lisboa = University of Lisbon = Université de Lisbonne

Working Papers from HAL

Abstract: This paper offers the first detailed characterization of the labor market in a tax paradise and the first assessment of how a reform aimed at discouraging tax avoidance affected workers. We show that incumbents were highly educated, performed specialized tasks, and benefited from a wage gap, particularly at the top.Immediately after the reform announcement, several workers exited. Stayers experienced wage increases of around 8% and a higher probability of working for several firms simultaneously. New hires earned, on average, 30% less than incumbents, frequently on temporary contracts. The results offer insights into policies promoting economic substance in low-tax jurisdictions.

Keywords: corporate tax avoidance; labor market; substance requirements; matched employer-employee data (search for similar items in EconPapers)
Date: 2025-01
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04940227v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-04940227v1/document (application/pdf)

Related works:
Working Paper: Treasure Islands, Real Jobs? Workers and Anti-Avoidance Policies in a Tax Paradise (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-04940227

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().