This paper analyzes whether taxation can be successfully used to reduce the incidence of labor informality and achieve higher equality in a globalized economy. To this purpose, it develops a two-area model: a developed country and an emerging country. The two areas differ according to the size of the informal sector, which is characterized by a more flexible labor market and lower productivity. To illustrate the potential role of taxation in achieving...
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INFORMATION
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2019/08/12
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Document de travail de recherche sur les politiques
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WPS8975
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1
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1
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2019/08/12
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Disclosed
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Can Taxes Help Ensure a Fair Globalization ?
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informal sector