Turning to the results for low and, respectively. high income countries-also reported in column l-only one additional variable is significant at the 10% level a least when adding one variable at the time as described above to the regression for the low income sample. No additional variable is selected in the sample including only countries with high income. The results for the sample of countries with low income are similar to the full sample, with the exception that per capita GDP is now significant at the 10% level, with the expected negative coefficient. In addition, the size of the shadow economy decreases at the 10% level of significance with stricter regulations of wages and prices, as measured by the Heritage index.Given that we already control for minimum wage regulation by including the respective Fraser index, this result is likely to be due to price rather than wage regulation Still, it is surprising.