Falling Tax Evasion: How Much Can Tax Rates and Labor Regulations Explain?

10 Pages Posted: 10 Feb 2008

See all articles by Klara Sabirianova Peter

Klara Sabirianova Peter

University of North Carolina - Chapel Hill; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: February 1, 2008

Abstract

The study examines if recent reforms in taxation and labor regulations in several transition and developing countries contributed to the observed decline in tax evasion. It uses the Business Environment and Economic Performance Survey, a unified firm survey in 33 countries conducted in 1999-2005. The paper finds a strong positive and statistically significant effect of various measures of taxation and regulation on sales underreporting.

Keywords: tax evasion, tax rate, flat tax, labor regulation, transition

JEL Classification: H26, H3, J08

Suggested Citation

Sabirianova Peter, Klara, Falling Tax Evasion: How Much Can Tax Rates and Labor Regulations Explain? (February 1, 2008). Andrew Young School of Policy Studies Research Paper Series No. 08-10. Available at SSRN: https://ssrn.com/abstract=1091536 or http://dx.doi.org/10.2139/ssrn.1091536

Klara Sabirianova Peter (Contact Author)

University of North Carolina - Chapel Hill ( email )

Chapel Hill, NC 27599
United States

HOME PAGE: http://www.unc.edu/~kpeter

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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