@TechReport{iza:izadps:dp5942,
            	author={Tonin, Mirco},
            	title={Underreporting of Earnings and the Minimum Wage Spike},
            	year={2011},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={5942},
            	url={https://www.iza.org/index.php/publications/dp5942},
	abstract={This paper documents a positive correlation within European labour markets between the proportion of full-time employees with earnings on the minimum wage and the extent of underreporting of earnings in the economy. Using a simple model of a competitive labour market, I show how this correlation can emerge as a result of the common dependence of both quantities on the strength of enforcement of fiscal regulation. This suggests that a high spike in the wage distribution at the minimum wage level is, in some contexts, an issue of fiscal enforcement, more than a labour market issue.},
	keywords={lighthouse effect;minimum wage;spike;underreporting},
            }