The main goal of our estimation is to study the industry incidence of tax evasion. We Önd a high tax evasion multiple for doctors, engineers, private tutors, Önancial services agents, accountants, and lawyers, consistently across di§erent credit models. We turn to making sense of the industry distribution. We Önd no evidence that the govern- ment is subsidizing either areas of local economic growth or industries o§ering apprentice-like training to unskilled workers. Turning to incentive stories, we investigate enforcement using detailed data by tax authority o¢ ces (which are very local in Greece). Our data tell an in- teresting story of enforcement, but the incentives of enforcement do.
