nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2015‒07‒18
six papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Illegal Immigration and the Shadow Economy By Carmen Camacho; Fabio Mariani; Luca Pensieroso
  2. Immigration, Amnesties and the Shadow Economy By Emanuele Bracco; Luisanna Onnis
  3. Compliance with Endogenous Audit Probabilities By Kai A. Konrad; Tim Lohse; Salmai Qari
  4. How to stop VAT frauds on the fuel market: a usual price rule By Pavel Semerad
  5. Políticas de fomento del empleo en las PyMEs y su impacto en el financiamiento de la seguridad social: estimación del costo fiscal By Calabria, Alejandro A.; Rottenschweiler, Sergio
  6. Fraude en el IRPF por fuentes de renta, 2005-2008: del impuesto sintético al impuesto dual By Félix Domínguez Barrero; Julio López Laborda; Fernando Rodrigo Sauco

  1. By: Carmen Camacho (CNRS and Paris 1, Panthéon-Sorbonne); Fabio Mariani (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and IZA, Bonn); Luca Pensieroso (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: We build a general equilibrium model in which both illegal immigration and the size of the informal sector are endogenously determined and interact in a non-trivial way. We show that policy measures such as tax reduction and detection of informal activities can be used as substitutes for border enforcement, in order to contrast illegal immigration. In our framework, a welfare-maximising Government will never choose to drive illegal immigration to zero, but will set the tax rate to a lower value if it includes illegal immigration in its objective function.
    Keywords: Illegal immigration; Clandestine workers; Informal sector; Shadow economy; Black market; Taxation; Immigration policy
    JEL: O17 F22 J61
    Date: 2015–06–29
  2. By: Emanuele Bracco; Luisanna Onnis
    Abstract: This paper explores the link between the shadow economy and immigration. We per- form an empirical analysis on a newly compiled dataset of Italian immigration and shadow economy estimates for the years 1995-2006, also exploiting the discontinuity created by the 2002 Italian immigration reform, which granted legal status to almost 700,000 illegal immigrants. Our data comprise local aggregate statistical information on the labour market and the economy, and a repeated cross section of households sur- veyed by the Bank of Italy. We find a robust positive relationship between the presence of immigrants and the shadow economy. This link is substantially weakened by the 2002 amnesty.
    Keywords: Shadow Economy, Immigration, Immigration Policies, Amnesties
    JEL: H26 J61
    Date: 2015
  3. By: Kai A. Konrad; Tim Lohse; Salmai Qari
    Abstract: This paper studies the effect of endogenous audit probabilities on reporting behavior in a face-to-face compliance situation such as at customs. In an experimental setting in which underreporting has a higher expected payoff than truthful reporting we find an increase in compliance of about 80% if subjects have reason to believe that their behavior towards an officer influences their endogenous audit probability. Higher compliance is driven by considerations about how own appearance and performance affect their audit probability, rather than by social and psychological effects of face-to-face contact.
    Keywords: Compliance, audit probability, tax evasion, face value, customs
    JEL: H26 H31 C91 K42
    Date: 2015
  4. By: Pavel Semerad (Department of Accounting and Taxation, Faculty of Business and Economics, Mendel university in Brno)
    Abstract: VAT fraud has now grown extensive and complex. One of the biggest problems is carousel fraud which causes huge losses to public budgets in many countries. Attention is devoted to the fuel market. A methodological tool that allows recognizing potential tax fraud on the basis of unusual sale prices was developed. For this reason, sale prices were collected and these could be available to judges and tax administrators when they make a decision about whether the price was usual or not. To get closer to reality, modified prices, which reflect real conditions on the market, e.g. placing goods in a tax warehouse, were also used.
    Keywords: Carousel frauds, fuels, tax evasion, usual price, value added tax
    JEL: H20 H26
    Date: 2015–07
  5. By: Calabria, Alejandro A.; Rottenschweiler, Sergio
    Abstract: The creation of employment and its formalization is, undoubtedly, a controversial and relevant topic in Argentina. At present, a law project on this subject is under debate: "Promoting Registered Employment and Labor Fraud Prevention", whose aim is to promote employment and/or formalization of new employees, primarily in micro, small and medium-sized enterprises, through the reduction of employer contributions. This decrease in public incomes should be compensated by other sources in order not to affect severely the financing of social security. This paper discusses the contribution that small and medium-sized enterprises to the social security system and examines the impact of the reduction of employer contributions to the financing of social security.
    Keywords: Creación de empleo; PyMEs; impacto fiscal
    JEL: E62 H25 H32 J38
    Date: 2014–07
  6. By: Félix Domínguez Barrero; Julio López Laborda; Fernando Rodrigo Sauco
    Abstract: En este trabajo se estima el fraude en el IRPF por fuentes de renta entre 2005 y 2008, aplicando la metodología de Feldman y Slemrod (2007) a la base de datos constituida por el Panel de Declarantes del IRPF publicado por el Instituto de Estudios Fiscales. De las estimaciones realizadas se concluye, primero, que, en todo el período, el mayor cumplimiento se encuentra en las rentas del trabajo y el menor, en las del capital mobiliario; segundo, que el grado de cumplimiento es, en general, menor en 2008 que en 2005; tercero, que, con la excepción de las rentas del capital mobiliario, el cumplimiento es mayor en las rentas superiores a la media; y cuarto, que el menor grado de cumplimiento se localiza en el grupo de comunidades con mejores características estructurales: Aragón, Cataluña y Madrid.
    Date: 2015–07

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