@TechReport{iza:izadps:dp17799,
            	author={Cabral, Sónia and Garcia, Joana and Miranda, Raquel and Peralta, Susana and Santos, João Pereira dos},
            	title={Treasure Islands, Real Jobs? Workers and Anti-Avoidance Policies in a Tax Paradise},
            	year={2025},
	month={Mar},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17799},
            	url={https://www.iza.org/index.php/publications/dp17799},
	abstract={What type of employment exists in low-tax jurisdictions? How are employment and individual workers affected by reforms aimed at better aligning profits with real activities? Using a unique employer-employee dataset for Zona Franca da Madeira, a tax paradise on a Portuguese island, we show that workers are highly educated, perform specialized tasks, and benefit from a wage gap, particularly at the top. A reform designed to link profits more closely with real substance resulted in worker exits, while those who remained experienced wage increases and a higher likelihood of working for multiple firms simultaneously. New hires faced more precarious conditions, earning, on average, 30% less than incumbents, often working under temporary contracts. These results offer insights into policies promoting economic substance in low-tax jurisdictions.},
	keywords={substance requirements;labor market;corporate tax avoidance;matched employer-employee data},
            }