Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/75051 
Erscheinungsjahr: 
2012
Schriftenreihe/Nr.: 
LICOS Discussion Paper No. 324
Verlag: 
Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance, Leuven
Zusammenfassung: 
We propose a theory of firm that is consistent with empirically observed phenomenon of firms simultaneously engaging in both firmal and infirmal activities. firms face endogenous probability of auditing that depends on the scale of underreporting of both sales and wages. We characterize the conditions for a firm facing corporate, value added and payroll taxes to hide a part of its activities. Underreporting gives rise to employment levels above those expected for firms that report truthfully. We also show that an underreporting firm is less affected by the introduction of the minimum wage. It further decreases the level of reported sales to mitigate the adverse effect that the minimum wage causes and decreases optimal employment by relatively less than an honest firm. The latter hypotheses is tested empirically using a matched employer-employee data set for Slovenia during the period of several minimum wage hikes (2007-2010).
Schlagwörter: 
informal economy
minimum wage
taxation
auditing
JEL: 
H26
J38
D21
Dokumentart: 
Working Paper

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