S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2010:3:
The Black Economy and Education

Ann-Sofie Kolml () and Birthe Larsen ()

Abstract: This paper develops and equilibrium search and matching model with informal sector employment opportunities and educational choice. We show that informal sector job opportunities distort educational attainment inducing a too low stock of educated workers. As informal job opportunities to a larger extent face low skilled workers, combating the informal sector improves welfare as it increases the incentives for education. However, too aggressive combating of the informal sector is not optimal as that induces inefficiently high unemployment rates.

Keywords: Tax evasion; underground economy; education; matching; unemployment; (follow links to similar papers)

JEL-Codes: H26; I21; J64; (follow links to similar papers)

27 pages, February 2, 2010

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp10_03.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Sten Nyberg ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:sunrpe:2010_0003 This page was generated on 2016-11-07 22:04:15