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The Emersion Effect: an analysis on labor tax evasion in Italy

Di Porto, Edoardo and Elia, Leandro and Tealdi, Cristina The Emersion Effect: an analysis on labor tax evasion in Italy. In: XXVII Convegno Nazionale di Economia del Lavoro, 27-28 September 2012, Seconda Università di Napoli, Santa Maria Capua Vetere, Italy pp. 1-25. (Submitted) (2012)

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Abstract

We analyze how different policy interventions may incentive emersion from unde-clared work. We use Italian data over the period 1998-2003 to investigate whether the 2003 Italian labor market reform was able to reach the objective to reduce the share of shadow economy. We develop a search and matching model, á la Mortensen, on the basis of our empirical investigation to determine the right mix of policy interventions which maybe effective in generating an emersion effect. Our preliminary findings show that differentiated forms of taxations and enforcement might create a good combination of incentives to achieve a significant reduction in undeclared work.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Very preliminary draft
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Research Area: Economics and Institutional Change
Depositing User: Ms T. Iannizzi
Date Deposited: 24 Sep 2012 08:45
Last Modified: 24 Sep 2012 08:45
URI: http://eprints.imtlucca.it/id/eprint/1370

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