- FREE briefs
- Conference '17
Gaming the System: Side Effects of Earnings-Dependent Benefits by Anna Zasova (BICEPS) and Vitalijs Jascisens (SITE). Today policy makers in developing and middle-income countries face tremendous challenges in combating various forms of tax evasion. Increasingly it is proposed to tie social security benefits to the reported income and in this way increase tax compliance incentives. We use administrative data from Latvia to study generous childcare benefits, which depend on the reported wages in the pre-childbirth period. Our analysis reveals pronounced wage growth shortly before the childbirth, which we rationalize by the legalization of previously undeclared wages. Obtained results show that the wage growth is temporary and lasts only until the end of the period, which is taken into account when calculating parental benefits.
The rise of the dual labour market: fighting precarious employment in the new member states through industrial relations (PRECARIR). Latvia report available here.
Speaker: Talis Putnins (University of Technology Sydney and SSE Riga)
Joint BICEPS and SSE Riga Seminar Series welcomes researchers working on theoretical or empirical topics in all fields, but especially on transitional economies. If you are interested in presenting your research in our research seminar series, please e-mail your proposal to Nicolas Gavoille at firstname.lastname@example.org.