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on Informal and Underground Economics |
| By: | Stanislav Klazar (Prague University of Economics and Business); Paulina Jalaksova (Prague University of Economics and Business) |
| Abstract: | We address the application of a behavioural approach to tax evasion or tax compliance in the European Union. We focus on the relationship between social norms and tax evasion. We analysed data from our survey (in 3 countries with the highest levels of tax evasion compared to 3 countries with the lowest levels). It seems that social norms on tax compliance in countries with low tax evasion are stronger than in other countries, particularly those with high levels of tax evasion. Focusing on forming social norms could solve tax evasion in some economies (countries). |
| Keywords: | Behavioural approach; Tax evasion; Tax compliance; Social norms |
| JEL: | H26 H39 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:13815918&r=iue |
| By: | Matthew Collin (World Bank); Vincenzo Di Maro (World Bank); David K. Evans (Center for Global Development); Fredrick Manang (University of Dodoma) |
| Abstract: | Low tax compliance in low- and middle-income countries around the world limits the ability of governments to offer effective public services. This paper reports the results of a randomly rolled out text message campaign aimed at promoting tax compliance among landowners in Dar es Salaam, Tanzania. Landowners were randomly assigned to one of four groups designed to test different aspects of tax morale. They received a simple text message reminder to pay their tax (a test of salience), a message highlighting the connection between taxes and public services (reciprocity), a message communicating that people who did not pay were not contributing to local or national development (social pressure), or no message (control). Recipients of any message were 18 percent (or 2 percentage points) more likely to pay any property tax by the end of the study period. Each type of message resulted in gains in payment rates, although social pressure messages delivered the lowest gains. Total payment amounts were highest for those who received reciprocity messages. Nudges were most effective in areas with lower initial rates of tax compliance. The average estimated benefit-cost ratio across treatments is 36:1 due to the low cost of the intervention, with higher cost-effectiveness for reciprocity messages. |
| Keywords: | tax compliance, tax morale, public finance, nudges |
| JEL: | H26 H13 O17 |
| Date: | 2022–08–08 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:621&r=iue |
| By: | Khondaker Golam Moazzem; Shah Md Ahsan Habib; Chowdhury Fariha |
| Abstract: | Corporate taxation’s transparency concerns have drawn regulatory bodies’ and policymakers’ attention. Global corporate income tax remains a key revenue source, shaping economic behaviour and resource distribution. However, profit-shifting practices have led to tax evasion, avoidance, and money laundering, impacting government revenues and development goals. Developing countries like Bangladesh face severe socio-economic consequences from these practices. In Bangladesh, the magnitude of tax loss reaches a staggering BDT 842 billion, representing a substantial 30.2 per cent of the total economy. Tax evasion is responsible for a tax loss ranging from BDT 418 billion (15 per cent estimate) to a staggering BDT 2, 230 billion (80 per cent estimate). |
| Keywords: | Corporate Tax, Tax Transparency, Income tax, Tax evasion, Money laundering, Tax avoidance, Bangladesh |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:report:38&r=iue |
| By: | Dohmen, Thomas (University of Bonn and IZA); Khamis, Melanie (Wesleyan University); Lehmann, Hartmut (Leibniz Institute for East and Southeast European Studies (IOS)); Pignatti, Norberto (ISET, Tbilisi State University) |
| Abstract: | Using data from the four waves of the Ukrainian Longitudinal Monitoring Survey - ULMS (2003, 2004, 2007 and 2012), we analyze whether workers with a higher willingness to take risks are more likely to select into informal employment contracts. The data permit us to distinguish between five employment states: formal and informal self-employment, formal salaried employment, voluntary informal salaried employment, and involuntary informal salaried employment. The empirical evidence reveals risk attitudes as a strong causal determinant of the incidence of all types of informal employment but involuntary informal salaried employment. We also provide evidence that our results are not driven by reverse causality: risk attitudes impact on the choice of employment state whilst this latter does not influence risk attitudes. Linking risk attitudes with selection into employment states, we also can establish that along the formal-informal divide the Ukrainian labor market is predominantly segmented for salaried workers whilst it is integrated for the self-employed. |
| Keywords: | risk attitudes, informal employment, labor market segmentation, Ukraine |
| JEL: | D91 J42 J46 P23 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16445&r=iue |
| By: | J. Hidalgo-Crespo (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G-SCOP_COSYS - Conception Systémique: Homme, Environnement, Technologies - G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); J.L. Amaya-Rivas (ESPOL - Escuela Superior Politécnica del Litoral [Guayaquil]); Inês Ribeiro (Instituto Superior Técnico - Universidade de Lisboa); M. Soto (Universidade da Coruña); Andreas Riel (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G-SCOP_COSYS - Conception Systémique: Homme, Environnement, Technologies - G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Peggy Zwolinski (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G-SCOP_COSYS - Conception Systémique: Homme, Environnement, Technologies - G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | Systems for managing municipal solid waste are typically ineffective in developing nations because of governments' deficient financial and administrative frameworks, poor rules, and a lack of suitable infrastructure and human resources. The informal sector plays an essential role in these systems by reprocessing waste into secondary raw materials, reducing collection and disposal costs, and, most importantly, benefiting the environment by avoiding incineration and landfilling. However, their actual contributions remain unknown. The present paper aims to understand the role of informal waste pickers (IWPs) in the waste management system of Guayaquil City and their environmental impact through the calculations of the carbon footprint (CF) avoided due to their aid. The survey design gathered information on their personal profiles, types, and rates of collected recyclables, market conditions, their main barriers, and troubles regarding their formalization. The results of the survey demonstrate that waste picking is mostly a male-driven activity, the average daily mass collected per IWP is 13 kg, the most collected recyclable waste is polyethylene terephthalate, their average monthly income is $179, and the total avoided CF of the entire informal waste picking process is almost 14 thousand tons of CO2 eq yearly. Further, IWPs prefer to operate alone, and only 16% of them would join a cooperative, despite their numerous financial, logistical, and personal challenges |
| Keywords: | informal waste pickers (IWPs), recycling rates, carbon footprint, challenges, earnings. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04196490&r=iue |
| By: | Gontero, Sonia; Velásquez Pinto, Mario D. |
| Abstract: | En 2019, aproximadamente 12 millones de personas se desempeñaban en el trabajo doméstico remunerado en América Latina. Esta ocupación constituye una fuente de ingreso para personas de bajo nivel educativo y migrantes, sobre todo mujeres. Son personas asalariadas cuyo empleador son hogares y muchas de las tareas que realizan se relacionan con el cuidado directo o indirecto. Representan una parte fundamental de la organización del trabajo en la sociedad y desempeñan un papel vital para el desarrollo económico. En la región, la mayoría de estas personas se desempeña en condiciones de informalidad y no goza de los derechos que la seguridad social puede brindar, lo que las expone a vulnerabilidades y constituye un importante obstáculo para el logro de los Objetivos de Desarrollo Sostenible. Diecisiete países han ratificado el Convenio sobre las Trabajadoras y los Trabajadores Domésticos, 2011 (núm. 189) de la Organización Internacional del Trabajo (OIT), que establece los derechos y principios básicos para el desarrollo de esta ocupación. Sin embargo, persisten importantes brechas para el logro del trabajo decente en este sector. En este documento se presentan iniciativas que han permitido avanzar en este camino en la región y se propone una estrategia en que los marcos regulatorios se complementen con medidas relacionadas con incentivos, fiscalización, calificación e información y diálogo. |
| Date: | 2023–08–17 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:49063&r=iue |