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Memorandum, Department of Economics, University of Oslo >
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http://hdl.handle.net/10419/62955
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| Title: | | Unreported labour  |
| Authors: | | Barth, Erling Ognedal, Tone |
| Issue Date: | | 2005 |
| Series/Report no.: | | Memorandum, Department of Economics, University of Oslo 2005,28 |
| Abstract: | | Unreported labour by one worker in a firm increases the probability of detection for his fellow workers, not only for himself. The firm takes this external effect into account. As a consequence, unreported work becomes rationed by the firms demand, rather than determined by demand equal supply. The gap between supply and demand increases with firm size. An empirical analysis on survey data supports theses theoretical predictions. Using a bivariate probit model, we find evidence of excess supply of unreported work in firms. We also find that the gap between supply and demand increases with firm size. |
| Subjects: | | tax evasion unreported labour |
| JEL: | | H26 J20 J22 J23 J24 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Memorandum, Department of Economics, University of Oslo
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