@TechReport{iza:izadps:dp12286,
            	author={Bergolo, Marcelo and Burdin, Gabriel and Rosa, Mauricio De and Giaccobasso, Matias and Leites, Martin},
            	title={Tax Bunching at the Kink in the Presence of Low Capacity of Enforcement: Evidence from Uruguay},
            	year={2019},
	month={Apr},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12286},
            	url={https://www.iza.org/publications/dp12286},
	abstract={By using a bunching design on rich administrative tax records from Uruguay's tax agency we explore how individual taxpayers respond to personal income taxation in a context with high sheltering opportunities. We estimate a moderated elasticity of taxable income in the first kink point (0.16) driven by a combination of gross labor income and deductions responses. Taxpayers use personal deductions more intensively close to the kink point and undereport income unilaterally or through employer-employee collusion. Our results suggest that policy efforts should be directed at broadening the tax base and improving the enforcement capacities rather than eroding tax progressivity.},
	keywords={deductions behavior;elasticity of labor income;tax bunching;personal income taxation;misreporting;developing economies},
            }