• Published 2011

Working Paper n . 08 – 2011 UNDECLARED WORK AND WAGE INEQUALITY

@inproceedings{Porto2011WorkingPN,
  title={Working Paper n . 08 – 2011 UNDECLARED WORK AND WAGE INEQUALITY},
  author={Edoardo Di Porto},
  year={2011}
}
In this paper we study how undeclared work affects the wages of undeclared and declared workers and in particular the declared wage inequality. Using individual data on Italy in the years 2000-2004, we compute a cross and own labor demand elasticity for undeclared and declared work. We provide an identification strategy relying on Italian amnesty tax laws in 2002. Such laws have changed the shape of Italian undeclared sector causing a quick emersion of undeclared workers. Our results based on a… CONTINUE READING

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