nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2019‒12‒16
three papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. The Impact of Mass Migration of Syrians on the Turkish Labor Market By Ege Aksu; Refik Erzan; Murat Güray Kırdar
  2. Quantification of changes in the VAT gap: an econometric approach By Konopczak, Karolina

  1. By: Ege Aksu (The Graduate Center, CUNY); Refik Erzan (Department of Economics Bogazici University); Murat Güray Kırdar (Department of Economics Bogazici University)
    Abstract: We estimate the effects of the arrival of 2.5 million Syrian migrants in Turkey by the end of 2015 on the labor market outcomes of natives, using a difference-in-differences IV methodology. We show that relaxing the common-trend assumption of this methodology—unlike recent papers in the same setting—makes a substantial difference in several key outcomes. Despite the massive size of the migrant influx, no adverse effects on the average wages of men or women or on total employment of men are observed. For women, however, total employment falls—which results mainly from the elimination of part-time jobs. While the migrant influx has adverse effects on competing native workers in the informal sector, it has favorable effects on complementary workers in the formal sector. We estimate about one-to-one replacement in employment for native men in the informal sector, whereas both wage employment and wages of men in the formal sector increase. Increases in prices in the product market and in capital flow to the treatm nt regions contribute to the rise in labor demand in the formal sector.
    Keywords: Labor Force and Employment, Wages, Immigrant Workers, Formal and Informal Sectors, Syrian Refugees, Turkey, Difference-in-differences, Instrumental Variables
    JEL: J21 J31 J61 C26
    Date: 2019–10
  2. By: Konopczak, Karolina (Ministry of Finance in Poland)
    Abstract: This article proposes an alternative methodology for estimating changes in the VAT gap that allows for their timely (quarterly) monitoring. It combines two traditions of tax modelling: calculating a discrepancy between theoretical tax liabilities and the amount of tax actually collected, as well as estimating elasticities of tax revenues. In this approach the VAT gap trajectory is associated with a changing elasticity of actual tax revenues with respect to theoretical revenues (or, equivalently, the elasticity of actual revenues corrected for changes in the tax system with respect to the tax base). The method was used to estimate changes in the VAT gap in Poland in years 2016 through 2018. The obtained results indicate that the gap decreased by approximately 21 billion PLN, which accounted for almost half of the increase in VAT revenues during that period. In percentage terms, the gap has narrowed from 20.8% in 2016 (European Commission, 2018) to below 10% at the end of 2018.
    Keywords: VAT gap; tax elasticities; cointegration; ARDL model
    JEL: C22 H24 H26
    Date: 2019–10–16
  3. By: Suryadi, Dedy
    Abstract: This study aimed to examine the effect of taxes and tax fairness dimensions of morale on the level of compliance with corporate taxpayers registered in KPP Bandung. Richardson (2006) and Azmi Perumal (2008) explains that there are five dimensions that influence tax compliance behavior, namely: (1) natural justice, (2) reciprocal government, (3) interest, (4) special provisions , (5) tax rate structure. While Mustikasari (2007) that (1) violates ethics, (2) guilt, (3) the principles of living a positive effect on tax compliance behavior.The study was conducted with a questionnaire survey method to test the primary data obtained from 72 respondents, using partial least squares analysis (PLS) was used to identify the dimensions of tax fairness and tax morale on tax compliance level agency listed in KPP Bandung. The results showed that the direct dimension tax fairness and tax morale significantly affect tax compliance Corporate Taxpayers are registered in KPP Bandung against the Taxpayer compliance rate, in which dimensions of tax justice has a positive effect on the level of compliance of Corporate Taxpayers and tax nor positive effect on the morale of the Taxpayer compliance rate.
    Date: 2018–03–26

This nep-iue issue is ©2019 by Catalina Granda Carvajal. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.