Third-party reporting and employers' tax withholding are powerful compliance mechanisms, as long as the employer and employee do not collude to evade. Using data from randomly assigned on-site audits among 2,462 Norwegian firms, we provide evidence of collusive tax evasion. We find that firms...

We conduct a field experiment with sellers of home-improvement services on two German online markets. We take the role of consumers and vary whether we request an invoice for the delivery of the service. In a market which allows anyone to sell anonymously, a willingness to evade is prevalent. In...

Shadow economy affects all country around the world. European countries are affected by undeclared work, under-reporting and tax evasion. This phenomenon increases from West to East, the most affected being the Balkan area. The size of shadow economy is growing due to government actions, such as...

Shadow economy affects all country around the world. European countries are affected by undeclared work, under-reporting and tax evasion. This phenomenon increases from West to East, the most affected being the Balkan area. The size of shadow economy is growing due to government actions, such as...