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Informality in labor market and welfare

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Previous issue date: 2005-06-10 / The neoclassical growth model with two sectors in production is employed in this paper in order to investigate how a change in the tax structure affects informality and welfare. We calibrate and simulate the model and find that welfare always increases when we reduce the tax rate on the demand for labor and adjust the tax rate on the value added so that the government revenue remains constant.

Identiferoai:union.ndltd.org:IBICT/oai:bibliotecadigital.fgv.br:10438/196
Date10 June 2005
CreatorsSanches, Daniel Rocha
ContributorsEscolas::EPGE, FGV, Pessôa, Samuel de Abreu
Source SetsIBICT Brazilian ETDs
LanguageEnglish
Detected LanguageEnglish
Typeinfo:eu-repo/semantics/publishedVersion, info:eu-repo/semantics/masterThesis
Sourcereponame:Repositório Institucional do FGV, instname:Fundação Getulio Vargas, instacron:FGV
Rightsinfo:eu-repo/semantics/openAccess

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