THE EFFECTS OF THE SHADOW ECONOMY ON THE LABOUR MARKET AND ITS REFLECTION ON THE RATE OF THE UNPLOYMENT | ||
| التجارة والتمويل | ||
| Article 10, Volume 35, Issue 3, September 2015, Pages 49-98 PDF (312.14 K) | ||
| DOI: 10.21608/caf.2015.127783 | ||
| Author | ||
| Fatma atya | ||
| Faculty of Commerce, Tanta University | ||
| Abstract | ||
| -The objective of this paper is discusses the main drivers of the shadow economy are (in order): tax and social security burdens, tax morale, the quality of state institutions and labour market regulation. A reduction in the tax burden is therefore likely to lead to a reduction in the size of the shadow economy. Indeed, a virtuous circle can be created of lower tax rates, less shadow work, higher tax morale, a higher tax take and the opportunity for lower rates. Of course, a vicious circle in the other direction can also be created. - Given this relationship, the high level of non-wage costs (averaging 39 per cent of total labour costs) and the penalty on individuals who move from earning one third to two thirds of the median wage . -The effects of the shadow economy on the labour market and the relationship between the size of the shadow economy and unemployment | ||
| Keywords | ||
| Shadow economy; Unemployment - Labour market | ||
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