VoxEU column: Minimum Wage Policy and Labour Tax Evasion
Read a VoxEU column by Nicolas Gavoille and Anna Zasova: ‘Minimum Wage Policy and Labour Tax Evasion.’ Their analysis shows that increasing the minimum wage has a positive effect on tax rules enforcement. However, this comes at the cost of negatively affecting employment in tax-compliant firms exposed to the minimum wage hike.
The column is based on an article forthcoming in the Journal of Public Economics, written under the EEA-Norway grant project No S-BMT-21-8 (LT08-2- LMT-K-01-073). Access the full paper via this link: What we pay in the shadows: Labor tax evasion, minimum wage hike and employment