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on Informal and Underground Economics |
| By: | Oscar Iván Ávila-Montealegre; Juan J. OspinaTejeiro; Anderson Grajales-Olarte; Mario A. Ramos-Veloza |
| Abstract: | We analyze how the minimum wage affects a typical emerging economy with high labor informality. Using an extended New Keynesian small open economy model, we find that an unexpected increase in the minimum wage disproportionately affects low-skilled workers, with limited effects on inflation and the monetary policy rate. A higher minimum wage raises production costs and induces the substitution of formal workers with informal labor and machinery, leading to lower output, employment, and net exports. We also find that the existence of a minimum wage alters the transmission of productivity, demand, and monetary shocks, resulting in a more persistent impact on macroeconomic variables and lower effectiveness of monetary policy in controlling inflation. While the minimum wage mitigates consumption inequality in the short run, it increases employment volatility. The macroeconomic implications of minimum wages are significant, and the mechanisms differ from those highlighted in the literature for advanced economies. |
| Keywords: | DSGE model, minimum wage, informal labor markets, monetary policy, heterogeneous agents |
| JEL: | E13 E50 J31 J46 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:rbp:wpaper:2025-018 |
| By: | Le, Xuan Truong; Nguyen, Hoang Tuan; Nguyen-Phung, Hang Thu; Le, Anh Tuan |
| Abstract: | This paper reflects the results of a survey of businesses in Vietnam to understand the factors affecting e-invoice fraud. Using survey data from Vietnamese enterprises and hypothesis testing grounded in fraud theories, this study examines key determinants of einvoice fraud. In parallel, it reviews the current legal and institutional framework governing einvoice management in Vietnam. Based on the empirical findings, the paper proposes policy recommendations in three areas: (i) strengthening the legal framework, (ii) enhancing information technology applications, and (iii) improving tax audit effectiveness. |
| Keywords: | E-invoice, Fraud, Prevention, Legal Framework |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:agi:wpaper:02000270 |
| By: | Cristiano C. Carvalho; Trine E. Vattø (Statistics Norway) |
| Abstract: | This paper examines how an often-overlooked source of pay transparency—the public disclosure of tax information—affects gender wage gaps. We exploit a 2001 change in Norway that made individual tax returns searchable online. Using matched employer–employee data and a difference in-differences design, we find that within-firm gender wage gaps fell by 2.2 percentage points (8.7 percent), driven by rising female wages. Effects are strongest in private-sector firms, industries with initially larger gaps, and municipalities that previously lacked easy access to printed tax lists. Wage gains are concentrated among job-changing women, suggesting that broad-based transparency mainly operates through improved information for job search. |
| Keywords: | Gender Wage Gap; Income Transparency; Public Disclosure of Tax Information |
| JEL: | J16 J31 J38 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:ssb:dispap:1033 |