The paper builds a theoretical model to analyse the interaction between minimum wage legislation and tax evasion by employed labour. The firm and the worker agree on the amount of earnings to report to the fiscal authorities, which possess an imperfect detection technology. The introduction of...

This paper tries to shed some light on the actual changes that occurred in the labour markets dynamics of the European Union 253 (EU-25) over the last decade using job tenure4 data. It then investigates the potential role of employment protection legislation (EPL)5 changes in explaining...

We investigate whether public and private sector employees differ in terms of public service motivation using a representative sample of elderly workers from 12 European countries. We find that public sector workers, both those currently employed and those already retired, are significantly more...

Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind the success of the Nordic model, where a comprehensive welfare state is associated with high employment. In a general equilibrium setting, the underlining mechanism works...

Peer effects arise in situations where workers observe each others’ work activity. In this paper we disentangle the effect of observing a peer from that of being observed by a peer, by setting up a real effort experiment in which we manipulate the observability of performance. In particular,...

There is a commonly held belief that those working in the public sector are more socially oriented than those in the private sector. In this article we report findings that indeed show how workers in the public sector are more likely to engage in socially motivated activities than their private...

Contributing to a social cause can be an important driver for workers in the public and non-profit sector as well as in firms that engage in Corporate Philanthropy or other Corporate Social Responsibility policies. This paper compares the effectiveness of social incentives - that take the form...

Contributing to a social cause can be an important driver for workers in the public and non-profit sector as well as in firms that engage in Corporate Social Responsibility activities. This paper compares the effectiveness of social incentives to financial incentives using an online real effort...

The public sector employs a large share of the labor force to execute important functions (e.g. regulation and public good provision) in an environment beset by severe agency problems. Attracting workers who are motivated to serve the public interest is important to mitigate these problems. We...

This paper derives the implications for compliance and fiscal revenues of a tax base that is the product of several factors. For instance, in the case of import tariffs, the tax base is the product of quantity and unit value, both reported to, and during an audit assessed by, the custom...