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on Informal and Underground Economics |
| By: | Deparade, Darius; Jarmolinski, Lennart; Mohr, Peter |
| Abstract: | Tax evasion is associated with high social and fiscal costs. To address these, many governments employ behavioral interventions given their low implementation costs and high potential efficiency. Although many studies report positive effects of behavioral interventions to combat tax evasion, the effect sizes are often quite small. This may result from the partial cancellation of heterogeneous effects and prompts calls in the literature for individualized or group-tailored interventions. While classification approaches for taxpayer types exist, their practical implementation is limited by data availability. We systematically review 144 studies conducted between 1996 and 2024 and show that group-tailored interventions along key inequality dimensions-gender, income, age, and regionality-may not only enhance tax compliance but also help address inequality. Furthermore, our heterogeneity analysis shows that intervention effectiveness can be enhanced by the incorporation of specific characteristics related to framing, intervention frequency, and communication channels. Finally, we present a theoretical model to support group-tailored interventions and thus provide policymakers with an efficient strategy to combat tax evasion. |
| Keywords: | Tax Compliance, Behavioral Intervention, Heterogeneity, Inequality |
| JEL: | H26 D31 D90 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fubsbe:318371 |
| By: | Zheng Jian (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Muhammad Azhar Shah (United Nations Resident Coordinator’s Office in Pakistan) |
| Abstract: | The objective of this policy brief is to provide an easy-to-digest overview of the factors affecting tax compliance in developing countries, including taxpayer motives at the micro level (section II) and determinants of national tax capacities at the macro level (section III), as well as a summary of policy options based on the discussion (section IV). Section V describes the tax situation in Pakistan and discusses the main messages and insights of the policy brief for Pakistan. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:unt:pbmpdd:pb130 |
| By: | Degenhardt, Felix (University of Potsdam); Nimczik, Jan Sebastian (European School of Management and Technology (ESMT)) |
| Abstract: | We examine whether gig jobs in online food delivery (OFD) are a stepping stone for refugees entering the Austrian labor market. Our identification strategy combines the quasi-random assignment of refugees to Austrian regions with the expansion of gig firms across the country. The local availability of OFD jobs at the time of access to the labor market initially accelerates job finding among refugees. Subsequently, however, gig workers remain in low-paid, unstable jobs with low career prospects, while the employment rate of refugees without gig opportunities catches up. The local availability of gig jobs negatively affects human capital investments and job search behavior, even among refugees outside the gig economy. |
| Keywords: | employment restrictions, refugees, gig work, labor market integration |
| JEL: | J15 J61 J81 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17928 |
| By: | Valenzuela-Rivera, Luis |
| Abstract: | Based on representative samples of gig workers from Chile (drivers and riders working through applications like Uber and Rappi), this paper explores the subjective and objective impact of two Chilean laws regarding the gig economy. The demographic and employment characteristics of these workers, including job satisfaction and motivation, are also analyzed. Overall, laws have a muted to negative effect on workers. For the first law (which formalizes the status of gig workers as workers), those who report a negative impact associate it with less flexibility regarding working hours, in addition to the now compulsory income taxes. For the second law (which increases the requirements to work as driver), more than half report that they will stop working. Partial compliance with the law also stands out, which is particularly clear in the low and stable rate of income reporting to the State by workers. |
| Keywords: | ig workers, gig economy, job satisfaction, social policy |
| JEL: | J28 J46 J88 K31 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124894 |
| By: | Lorenzo Aldeco Leo; Matteo Ghilardi; Hugo Tuesta |
| Abstract: | This paper explores how fluctuations in crime rates influence labor market outcomes in Mexico. Using detailed survey data and an individual-fixed effect estimation, the analysis reveals distinct gender dynamics in response to rising homicide rates. Men are more likely to exit the labor market due to reduced demand for their labor, while women increasingly join the workforce, mainly in the informal sector, to offset this decline. This outcome is largely driven by the presence of drug trafficking organizations, which primarily employ men in their operations. Escalating violence also increases labor mobility, leading to higher job separations, particularly among women seeking safer employment. Our results highlight that while increasing crime in the form of homicides may not induce large changes in the aggregate level of employment, there is evidence of labor reallocation across and within sectors. This suggests an increase in labor market misallocation. |
| Keywords: | Crime; Labor Markets; Gender; Mexico. |
| Date: | 2025–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/100 |