摘要：Unreported labour by one worker in a firm increases the probability of detection for
his fellow workers, not only for himself. The firm takes this external effect into
account. As a consequence, unreported work becomes rationed by the firms demand,
rather than determined by demand equal supply. The gap between supply and demand
increases with firm size. An empirical analysis on survey data supports theses
theoretical predictions. Using a bivariate probit model, we find evidence of excess
supply of unreported work in firms. We also find that the gap between supply and
demand increases with firm size.
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