The movement of the workforce between the formal and informal sector can change the face of the cities and affect the development of the country. One of the main reasons for the recruitment of informal labor in various industries is to escape tax policy of the state. Th More
The movement of the workforce between the formal and informal sector can change the face of the cities and affect the development of the country. One of the main reasons for the recruitment of informal labor in various industries is to escape tax policy of the state. The study of the impact of government tax policies on the development trend of different regions of the country (especially developing countries) is significant for policy makers. In this paper, we have tried to use a generalized computable equilibrium model (CGE) to examine the impact of government tax policies on the economy of Qazvin province. The result of this study reflects the fact that the increase in taxes will lead to a strong movement of labor from the official sector to the informal sector in the province.
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