nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2018‒12‒17
six papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. What Matters for Whistleblowing on Tax Evaders? Survey and Experimental Evidence By Armenak Antinyan; Luca Corazzini; Filippo Pavesi
  2. Will Destination-Based Taxes be Fully Exploited when Available? An Application to the U.S. Commodity Tax System By David R. Agrawal; Mohammed Mardan
  3. Toilets Not Taxes: Gender Inequity in Dar es Salaam’s City Markets By Siebert, Marius; Mbise, Anna
  4. Social Security Entitlement in Maghreb Countries: Who is Excluded? Who is not Interested? By Walid Merouani; Claire El Moudden
  5. Pathways to formalization and decent work for young people in Argentina comparative study of international legislation and selected countries: executive summary By Bertranou, Fabio.; Jiménez, Mónica.; Jiménez, Maribel.
  6. Women in (and out of) artisanal mining: apposing policy and women's lived experiences in Lujinji B and Wakayiba mines, Mubende, Uganda By Muheki, Stella; Geenen, Sara

  1. By: Armenak Antinyan (International Academy of Business and Economics, Tianjin University of Finance and Economics); Luca Corazzini (Department of Economics, University of Venice \"Ca’ Foscari\"); Filippo Pavesi (Department of Economics (University of Verona))
    Abstract: Whistleblowing is a powerful tool that the tax authorities of various countries use to curb tax evasion. Nonetheless, the determinants shaping one’s positive attitude toward whistleblowing on tax evaders are rather understudied. We investigate the relationship between trust in the government and the attitude toward whistleblowing on tax evaders. We use data from two survey experiments conducted in Italy and the US, as well as from a unique national household survey administered in the Republic of Armenia. Our findings indicate that the level of trust in the government positively influences individuals’ attitude toward whistleblowing, with this effect being robust across countries and data sources.
    Keywords: Government Trust, Whistleblowing, Tax Evasion
    JEL: H26 G28
    Date: 2018–12
  2. By: David R. Agrawal; Mohammed Mardan
    Abstract: We develop a tax competition model that allows for the setting of both an origin-based and a destination-based commodity tax rate in the presence of avoidance and evasion. In the presence of evasion, jurisdictions will give cross-border shoppers tax preferential treatment, thus not fully exploiting the potential of destination-based taxation. Moreover, the divergence between origin-based and destination-based taxes is stronger when the incentives for consumers’ tax-arbitrage opportunities increase. The United States is one example of many such systems. While sales taxes are due at the point of sale, use taxes are due on goods purchased out-of-state. We document that when able to set both rates, a majority of jurisdictions levy destination-based use taxes at a lower rate than origin-based sales taxes. In response to changes in state-level policies that increase tax avoidance opportunities, the results of the empirical model broadly confirm our theory.
    Keywords: tax evasion, tax avoidance, destination taxation, origin taxation, tax competition, use tax, sales tax
    JEL: C72 H21 H25 H26 H77 P16 R51
    Date: 2018
  3. By: Siebert, Marius; Mbise, Anna
    Abstract: In this paper we examine market taxation in Dar es Salaam from a gender perspective. We do not find any evidence of gender bias in the way market traders are taxed, but we do find a major gender issue that we did not expect – toilet fees. Female traders pay up to 18 times more for their daily use of the market toilets than they pay as market tax. High toilet fees have a differential and adverse impact on women, who require toilets more frequently than men, and have fewer alternatives. This shows that a focus on formal taxation systems does not reveal all complex linkages between gender and taxation in the informal sector of developing countries. A gender-aware perspective on market taxation requires us to look wholistically at gender-differentiated patterns of use and funding of collective goods and services.
    Keywords: Governance,
    Date: 2018
  4. By: Walid Merouani (Centre de Recherche en Economie Appliquée pour le Développement); Claire El Moudden
    Abstract: The issue of whether informal jobs are chosen voluntarily by workers or as a strategy of last resort is controversial. Many authors recognize that the informal sector is heterogeneous and it is composed of workers who voluntary choose it and others who are pushed inside because of entry barriers to the formal sector (Günther & Launov, 2012). Using the SAHWA survey and discrete choice models, this article confirms the heterogeneity of the informal labor market in three Maghreb countries: Algeria, Morocco, and Tunisia. Furthermore, this article highlights the profiles of workers who voluntarily choose informality, which is missing from previous studies. Finally, this article proposes policy recommendations in order to extend social security to informal workers and to include them in the formal labour market.
    Date: 2018–06–12
  5. By: Bertranou, Fabio.; Jiménez, Mónica.; Jiménez, Maribel.
    Date: 2017
  6. By: Muheki, Stella; Geenen, Sara
    Abstract: This paper is situated within an emerging literature on women in mining. It seeks to understand the role of Ugandan women in artisanal and small-scale mining (ASM) as well as the impact of formalising ASM on these women. Using insights from research on social exclusion and adverse incorporation, the paper explores the challenges of integrating an informal economy into the formal economy, with an emphasis on the Ugandan Minerals and Mining Policy 2018. The study observes that the regulatory framework underpinning formalisation of ASM glosses over gender considerations and risks further marginalizing women. It suggests ways to mitigate likely impacts of this legislation and argues for real transformative change so as to make women’s participation in ASM more beneficial for them.
    Keywords: Uganda; artisanal mining; women
    Date: 2018–12

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