nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2022‒01‒03
three papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Gender dimensions of solid and liquid waste management for reuse in agriculture in Asia and Africa By Taron, Avinandan; Drechsel, Pay; Gebrezgabher, Solomie
  2. Using a natural experiment in the taxicab industry to analyze the effects of third-party income reporting By Bibek Adhikari; James Alm; Brett Collins; Michael Sebastiani; Eleanor Wilking
  3. Carrots, Sticks, or Simplicity? Field Evidence on What Makes People Pay TV Fees Abstract: We provide evidence on both innovative as well as known behavioral strategies aimed at improving tax compliance, using a unified environment of two large correspondence experiments (N=82,599 and N=51,142) with potential TV-fees evaders in the Czech Republic. We (i) simplify the original letter and add a QR code for easier registration; use two innovative text strategies aimed at (ii) the elicitation of preference for fee designation, and (iii) the explanation of fee purpose. We also employ strategies known in the literature but providing mixed results: highlighting (iv) legal consequences of non-compliance, (v) value of services for the fee, and (vi) social norms. Apart from the text treatments, we modify the envelopes by placing there (vii) a picture of a cartoon character (supported by a sticker inside), or (viii) a red inscription "Important", with the aim to stimulate recipients' reciprocity and attention. Our results show that the text simplification and highlighting legal consequences substantially improve effectiveness of the letter, which we self-replicate on a new sample two years later, while the remaining treatments do not improve over the baseline. The QR code brings only a modest improvement. By Jana Cahlíková; Lubomir Cingl; KateÅ™ina Chadimová; Miroslav ZajíÄ ek

  1. By: Taron, Avinandan; Drechsel, Pay; Gebrezgabher, Solomie
    Abstract: This report examines social equality aspects related to resource recovery through solid waste composting and wastewater irrigation. The report shows that women are represented in greatest numbers at the base of the recycling chain, most often as informal waste pickers and as sorters of recyclables with limited access to resources and upward mobility. Despite a wide gender gap in the solid waste and sanitation sectors, women play a key role in both municipal waste reduction and food safety where irrigation water is unsafe. Analyzing the gender dimension is important for understanding household responses to recycling programs, differences between the formal and informal sectors as well as along the waste-to-resource value chain from collection to treatment and reuse. The report stresses the important role of women in household waste management, including waste segregation, and the power of women-dominated waste picker associations, where the informal sector plays an essential role alongside the formal sector.
    Keywords: Resource recovery; Resource management; Water reuse; Gender equity; Social equality; Waste management; Solid wastes; Liquid wastes; Agricultural value chains; Circular economy; Business models; Women's participation; Urban wastes; Household wastes; Faecal sludge; Waste collection; Recycling; Wastewater treatment; Organic wastes; Composting; Wastewater irrigation; Sustainable Development Goals; Health hazards; Sanitation; Community involvement; Social marketing; Entrepreneurs; Farmers
    Date: 2021
  2. By: Bibek Adhikari (Illinois State University); James Alm (Tulane University); Brett Collins (Internal Revenue Service); Michael Sebastiani (Internal Revenue Service); Eleanor Wilking (Cornell School of Law)
    Abstract: This paper uses confidential tax returns data from sole proprietor businesses to estimate behavioral responses to the introduction of Form 1099-K, a third-party income reporting law that requires credit and debit card companies to report to the Internal Revenue Service gross of payment transactions that businesses receive through their payment systems. We estimate the causal impact of Form 1099-K on business reporting by exploiting a natural experiment in which some cities in the U.S. passed ordinances requiring taxicabs to install credit card readers in their vehicles, while other cities did not pass such ordinances, creating plausibly exogenous variation in the share of receipts reported on Form 1099-K. We find that taxpayers respond to third-party information reporting in offsetting ways. In particular, we find that businesses from cities with mandatory credit card in taxicab ordinances reported more receipts after the introduction of Form 1099-K compared to similar businesses from cities without mandatory credit card in taxicab ordinances, but they also reported an increase in expenses of similar magnitude. On net, third-party information reporting led to small and statistically insignificant changes in taxable income, profit, and tax liability. These results are robust to a variety of alternative specifications and placebo tests.
    Keywords: Income reporting, Tax enforcement, Tax compliance, Taxi industry, Sole proprietors
    JEL: H25 H26 H32
    Date: 2021–12
  3. By: Jana Cahlíková; Lubomir Cingl; KateÅ™ina Chadimová; Miroslav ZajíÄ ek
    Keywords: tax compliance; natural experiment; deterrence; simplicity; QR code
    JEL: C91 C93 D02 H24 H26
    Date: 2021–07

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