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Are Underground Workers More Likely To Be Underground Consumers ? *
| Content Provider | Semantic Scholar |
|---|---|
| Author | Fortin, Bernard Lacroix, Guy L. Montmarquette, Claude |
| Copyright Year | 1997 |
| Abstract | This paper investigates the e ect of working in the underground sector on the level of individual underground expenditures. We show that it can be decomposed into a network e ect, a non-separability e ect and an income e ect. Our empirical analysis uses micro data from a randomized survey conducted in the Province of Quebec for 1993. GMM methods allow us to take into account censoring and measurement error on the dependent variable as well as the possible endogeneity of the conditioning labor supply variables. We nd that an increase in the underground labor supply has a strong positive e ect on the level of underground expenditures. This relationship ampli es the impact of tax policy and of the enforcement system on the size of the underground economy. Financial support from the Department of Finance Canada and CIRANO is gratefully acknowledged. We thank Louis Trottier for excellent research assistance and Ga etan Garneau and Fran cois Raymond for their help in constructing the data set. We are also grateful to Thomas Lemieux, Pascal St-Amour and Bruce Shearer for very helpful discussions. Professor, D epartement d' economique, Universit e Laval and Research Director, CIRANO. email: bernard.fortin@ecn.ulaval.ca Associate Professor, Universit e Laval, D epartement d' economique, and Research Associate, CIRANO. email: guy.lacroix@ecn.ulaval.ca Professor, D epartement de sciences economiques, Universit e de Montr eal and Research Director, CIRANO. email:montmarc@cirano.umontreal.ca |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.cirano.qc.ca/pdf/publication/97s-28.pdf |
| Alternate Webpage(s) | http://www.cirano.qc.ca/files/publications/97s-28.pdf |
| Alternate Webpage(s) | http://www.ecn.ulaval.ca/w3/recherche/cahiers/1997/9710.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Bibliothèque des Ecoles françaises d'Athènes et de Rome Diethylstilbestrol Ectomesenchymal Chondromyxoid Tumor Endogeneity (econometrics) EstDomains Evasion (network security) Gm(m) Google Map Maker Interaction Kind of quantity - Equilibrium Lactic acid Lichen Sclerosus et Atrophicus Linear algebra Linear separability Lupus erythematosus cell Lycodes lavalaei MALL gene Manufactured Supplies Nonprofit Organizations Published Comment Randomized algorithm Religious Missions Selectivity (electronic) ULBP1 protein, human Underground corporation explanation funding grant teams |
| Content Type | Text |
| Resource Type | Article |
