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Orientador(es)
Resumo(s)
This study advances the existing knowledge about the interactions between tax avoid ance and employees’ pay. Specifically, we investigate whether workers employed by
companies operating in a low-tax zone (the Free Trade Zone of Madeira, FTZ) benefit
from a positive wage premium. Drawing on a rich administrative linked employer employee dataset covering the universe of private firms in Portugal, we follow three
different econometric approaches: a high-dimensional fixed effects regression analysis,
an analysis focused only on workers employed simultaneously by FTZ and non-FTZ
firms, and coarsened exact matching. We find evidence of a positive wage premium for
workers in the FTZ.
Descrição
Palavras-chave
Tax avoidance Labor market impacts Wage premium Fixed effects estimation
