| Author: | Lacroix, G. Montmarquette, C. |
| Title: | Are underground workers more likely to be underground consumers? |
| Journal: | Economic Journal
2000 : OCT, VOL. 110:466, p. 838-860 |
| Index terms: | WORKERS CUSTOMERS MODELS |
| Language: | eng |
| Abstract: | The authors investigate the impact of working in the underground sector on the demand for underground commodities. Using a tax evasion model with costly information, the authors show that the presence of a network effect encourages underground workers to purchase underground commodities. The model is estimated using a unique Canadian microdata set for 1993. An increase in underground hours of work has a strong positive effect on the probability of purchasing underground commodities and on the level of expenditures. |
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