nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2019‒08‒26
seven papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Pecuniary and Non-Pecuniary Motivations for Tax Compliance: Evidence from Pakistan By Joel Slemrod; Obeid Ur Rehman; Mazhar Waseem
  2. Information, Asymmetric Incentives, or Withholding? Understanding the Self-Enforcement of Value-Added Tax By Mazhar Waseem
  3. VAT Compliance, Trade, and Institutions By Peter Morrow; Michael Smart; Artur Swistak
  4. Income underreporting by the self-employed in Europe: a cross-country comparative study By Merike Kukk; Alari Paulus; Karsten Staehr
  5. Substitute or Complement? Formal and Informal Methods of Saving: The Case of Unskilled Workers in the Cut Flower Industry in Ethiopia By Ryu, Eun Jin; Suzuki, Aya
  6. The Mobile Phone, Information Sharing and Financial Sector Development in Africa: A Quantile Regressions Approach By Simplice A. Asongu; Nicholas M. Odhiambo
  7. Aproximación a las condiciones laborales del trabajo textil a domicilio marplatense y su lugar en la cadena de valor de la industria By Pellegrini, Mariana

  1. By: Joel Slemrod; Obeid Ur Rehman; Mazhar Waseem
    Abstract: We examine two Pakistani programs to explore the role of deterrence as well as social and psychological factors in the tax compliance behavior of agents. In the first of these programs, the government began revealing income tax paid by every taxpayer in the country. The second program publicly recognizes and rewards the top 100 tax paying corporations, partnerships, self-employed individuals, and wage-earners. We find that both public disclosure and social recognition of top taxpayers caused a substantial increase in tax payments. We explore the drivers of this behavior, including the shift of social norms toward compliance.
    Keywords: tax evasion, income tax, social norms
    JEL: H24 H25 H26
    Date: 2019
  2. By: Mazhar Waseem
    Abstract: During the period 1996-2000, the coverage of VAT in Pakistan rose by twenty times in terms of the number of firms in the tax net and by ten times in terms of the volume of transactions subject to it. This paper leverages this staggered introduction of VAT in the country to estimate its enforcement spillovers. Focusing on firms already in the tax net, I explore if their tax compliance improves as VAT gets extended to their trading partners. Using differential responses to upward and downward extension of the tax, I characterize the mechanisms underlying the self-enforcement response.
    Keywords: VAT, tax evasion, informality
    JEL: H25 H26 O17
    Date: 2019
  3. By: Peter Morrow; Michael Smart; Artur Swistak
    Abstract: We develop a simple structural model of value added tax (VAT) compliance, and estimate it using widely available national accounts data to learn about compliance in countries where little is currently known. International border controls improve VAT compliance, generating a correlation between imports and aggregate VAT revenues that is informative about domestic non-compliance. Estimates suggest that revenue lost due to domestic non-compliance is large, particularly in countries with low perceived institutional quality. Border controls keep overall VAT revenues high especially in countries open to international trade.
    JEL: H25 H26
    Date: 2019
  4. By: Merike Kukk; Alari Paulus; Karsten Staehr
    Abstract: This study is the first to provide comparative estimates of the extent of income underreporting by the self-employed across countries in Europe. The estimates are derived using the consumption method developed by Pissarides & Weber (1989) and the data from the 2010 wave of the harmonised EU Household Budget Survey. The estimations show that the share of income not reported by the selfemployed is relatively large in many European countries, although with substantial variation across the countries. There is some regional clustering, but the shares of underreporting appear not to be related to the development level of the countries. The results are robust to changes in the model specification, the estimation method, and the choice of instruments, but are somewhat sensitive to sample restrictions and the criterion used to define self-employed households
    Keywords: ncome underreporting, self-employment, EU countries, household budget surveys
    JEL: H26 E21 E26 H24
    Date: 2019–01–23
  5. By: Ryu, Eun Jin; Suzuki, Aya
    Keywords: Agricultural Finance
    Date: 2019–06–25
  6. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study investigates linkages between the mobile phone, information sharing offices (ISO) and financial sector development in 53 African countries for the period 2004-2011. ISO are private credit bureaus and public credit registries. The empirical evidence is based on contemporary and non-contemporary quantile regressions. Two main hypotheses are tested: mobile phones complement ISO to enhance the formal financial sector (Hypothesis 1) and mobile phones complement ISO to reduce the informal financial sector (Hypothesis 2). The hypotheses are largely confirmed. This research adds to the existing body of literature by engaging hitherto unexplored dimensions of financial sector development and investigating the role of mobile phones in information sharing for financial sector development.
    Keywords: Information sharing; Banking sector development; Africa
    JEL: G20 G29 L96 O40 O55
    Date: 2019–01
  7. By: Pellegrini, Mariana
    Abstract: El trabajo a domicilio se ha convertido en un soporte fundamental del proceso productivo del sector textil marplatense. Dicha modalidad de trabajo se desarrolla mayoritariamente en el ámbito de la informalidad, a pesar de hallarse regulada por la ley 12.713. Las tareas se desarrollan mayoritariamente por mujeres, a las que además de las condiciones de informalidad, se les suma la necesidad de conciliar el trabajo doméstico y de cuidado no remunerado, con las actividades desarrolladas para el mercado. Estas condiciones se refuerzan ante la falta de políticas de cuidado y la falta de opciones de inserción al mercado laboral de las mujeres. Asimismo, el sector textil sufre la competencia de productos extranjeros, en un escenario de deslocalización y trasnacionalización del capital. En este contexto, el trabajo es la variable de ajuste elegida para incrementar la rentabilidad empresarial. Así, los empresarios optan por externalizar el trabajo, lo que les permite transferir hacia el trabajador todo tipo de incertidumbres coyunturales y comerciales, y, a la vez, eludir las responsabilidades jurídicas y económicas derivadas del contrato de trabajo. En esta ponencia proponemos una primera aproximación al proceso productivo en el trabajo domiciliario textil, y su integración al conjunto de la industria local.
    Keywords: Condiciones de Trabajo; Informalidad Laboral; Precarización Laboral; Industria Textil; Mar del Plata;
    Date: 2019–03

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