|
on Informal and Underground Economics |
| By: | Matthias Cologna (Free University of Bozen-Bolzano, Italy); Robin Scheuch (Max Planck Institute for Research on Collective Goods & University of Cologne) |
| Abstract: | Cross-cultural research on tax compliance provides two competing explanations for differences in tax paying behavior. The institutional explanation focuses on differences in institutions (e.g., fines, frequency of audits), while the cultural explanation emphasizes differences in culture as an important driver. Contrary to most other studies analyzing differences across countries, we take not only a within-country but a within-region perspective, specifically the Northern Italian region of South Tyrol. Here, two main linguistic - and cultural - groups, German and Italian, co-exist within the same institutional environment. We use a lab-in-the-field experiment with a non-student pool of 190 participants recruited in Bolzano/Bozen, the largest city in South Tyrol. We document that, while the overall level of evasion is similar, there is a difference in tax compliance between the two groups when differentiating between the intensive and extensive margin: Italian speakers evade larger amounts whereas German speakers tend to evade more often. Our experiment is completed by a belief elicitation task and a dice truth-telling game. For both groups perceived tax compliance is lower than actual tax compliance and German speaking taxpayers are perceived to be more compliant. In the dice game, Italian speakers report higher numbers than would be expected from a fair die. |
| Keywords: | Tax Evasion, Culture, Beliefs, Honesty. |
| JEL: | H26 D91 C91 C93 R10 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:bzn:wpaper:bemps114 |
| By: | Thaline do Prado; Marcelo Santos; Bernardus Van Doornik |
| Abstract: | We study the impacts of enforcing compliance with labor regulations on firm dynamics by combining firm-level administrative records and labor inspection data on formal Brazilian establishments committing “unregistered employee” infractions. We first provide suggestive evidence that inspected firms employing informal workers are more likely to exit following a labor inspection, compared to firms never penalized for such infractions. Next, we apply a difference-in-differences framework using firms not yet penalized for “unregistered employee” infractions as the control group to estimate the effect of labor inspections on firm-level outcomes. We find that formal employment and formal labor hiring experience a positive spike in the year of the inspection, indicating the formalization of unregistered employees. However, formal employment declines steadily over time, dropping nearly 60% by the fourth year after inspection. Among firms with active bank relationships, revenue falls sharply by about 24% over the same period. We also observe a persistent reduction in the outstanding loan amount and significant rise in the non-performing loan ratio. The average formal wage drops by about 1% in the year of inspection, but returns to pre-inspection levels in later years. Our findings are consistent with firms reducing their overall labor usage due to higher labor costs, which arise from increased compliance with labor regulations following a labor inspection. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:bcb:wpaper:622 |
| By: | Okeke, Clement Ejiofor; Salaudeen, Yinka Mashood |
| Abstract: | The Nigerian company income tax has undergone historic reforms since early 1990 for the main purpose of encouraging voluntary tax compliance by the companies. This study therefore examined the impact of the past corporate tax reforms on the tax compliance level of companies in Nigeria. Secondary data in the form of annual corporate tax revenue and GDP were extracted from the National Bureau of Statistics records, Federal Inland Revenue Service reports, and Central Bank of Nigeria Bulletins from 1991-2021. Tax compliance rate was generated by computing annual corporate tax revenue as a percentage of the GDP. Wilcoxon rank-sum test and ANOVA were used to determine impact of the reforms on tax compliance. The findings show that only reforms of 2007 and 2015 had significant impacts on tax compliance level out of eight reforms reviewed. While the reform of 2007 had a positive impact, that of 2015 was negative. |
| Keywords: | Tax; Tax Compliance; Tax Reforms; Corporate Tax Compliance Behaviour; GDP; Companies; Company Income Tax Revenue |
| JEL: | H2 M48 |
| Date: | 2023–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124365 |
| By: | Chaimae Chaabi (Doctorante); Yassine Mohamed El Haddad |
| Abstract: | In recent years, the Moroccan tax administration has taken significant steps to accelerate digitalization, a topic that has become central across all sectors and organizations. The DGI (General Directorate of Taxes) has embarked on a transformation process that requires in-depth investigations. The aim of this article is to theoretically analyze the impact of digitalization on the tax controls carried out by the tax administration. We have chosen a narrative literature review to provide a comprehensive analysis of the existing research. The research question guiding this study is as follows: how and to what extent does digitalization contribute to the effectiveness of tax controls carried out by the tax administration? This review highlights approaches concerning efficiency, tax fraud, and the management of tax resources. The results show that digitalization has had a significant impact on tax management by improving the efficiency of tax controls, expanding the tax base, and strengthening the fight against tax fraud and evasion, particularly through the automation of declarations and payments. The main theoretical conclusions reveal that digitalization facilitates the optimization of tax processes through the digitalization of declarations and payments, and improves the transparency of interactions between the taxpayer and the administration. However, theoretical divergences exist, particularly regarding the scope of the impact of these technologies on small businesses and taxpayers less familiar with digital technologies, thus representing a significant theoretical gap. |
| Abstract: | Ces dernières années, l'administration fiscale marocaine a pris des mesures importantes pour accélérer la digitalisation, un sujet devenu central dans tous les secteurs et organisations. La DGI (Direction Générale des Impôts) a entrepris un processus de transformation nécessitant des investigations approfondies. L'objectif de cet article est d'analyser théoriquement l'impact de la dématérialisation sur les contrôles fiscaux réalisés par l'administration fiscale. Nous avons opté pour une revue de littérature conceptuelle afin de proposer une analyse globale des recherches existantes. La question de recherche qui guide cette étude est la suivante : comment et dans quelle mesure la dématérialisation contribue-t-elle à l'efficacité des contrôles fiscaux réalisés par l'administration fiscale ? Cette revue met en lumière l'accent sur les approches concernant l'efficacité, la fraude fiscale, et la gestion des ressources fiscales. Les résultats montrent que la digitalisation a eu un impact significatif sur la gestion fiscale, en améliorant l'efficacité des contrôles fiscaux, en élargissant l'assiette fiscale, et en renforçant la lutte contre la fraude et l'évasion fiscales, notamment grâce à l'automatisation des déclarations et des paiements. Les principales conclusions théoriques révèlent que la dématérialisation facilite l'optimisation des processus fiscaux grâce à la digitalisation des déclarations et des paiements, et améliore la transparence des interactions entre le contribuable et l'administration. Cependant, des divergences théoriques existent, notamment sur la portée de l'impact de ces technologies sur les petites entreprises et les contribuables moins familiarisés avec les technologies numériques, représentant ainsi un gap théorique important. |
| Keywords: | Dematerialization, tax administration, tax audit, tax revenue., Dématérialisation, administration fiscale, contrôle fiscal, recettes fiscales. |
| Date: | 2025–02–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05021348 |
| By: | Joubert, Clement (World Bank); Kanth, Priyanka (World Bank) |
| Abstract: | Low- and middle-income countries are experiencing fast population aging and reductions in extreme poverty, increasing theoretical incentives to save for old age, but empirical evidence on household wealth accumulation over the life cycle is lacking. Using age-cohort-time decompositions on 18 years of micro-data from Pakistan, we show that the average household accumulates wealth equivalent to 5 years’ worth of consumption between the ages of 25 and 65. Furthermore, this is mostly in the form of illiquid residential housing and land in rural areas. Examination of housing acquisitions, renovations, and dwelling characteristics over the life cycle reveals that wealth accumulation in 2001-2018 resulted partly from active investment in housing and partly from capital gains. To the extent that keeping all wealth in the form of housing may be sub-optimal, this constrained ability to save for the long term could motivate the extension of contributory pension instruments to informal sector workers, the majority of the workforce in this setting. |
| Keywords: | social protection, savings, informality, aging |
| JEL: | D14 D15 J11 J26 J46 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17876 |
| By: | Oettinger, Sophia |
| Abstract: | This dissertation examines Latin America’s historical attempts to address urban housing precarity during the 1990s through market-based social housing policies, focusing on Chile, Mexico, and Uruguay. It assesses how these policies, shaped by national coalition- building challenges, historical social policy frameworks, and state capacities, failed to resolve housing issues. Despite advancements in housing studies, the dual nature of housing as both a social good and a commodity—along with its complex social, financial, and spatial connections within the capitalist economy—remains insufficiently understood. This research employs a Marxist-inspired perspective to explore the nuances and shortcomings of the post- Cold War mixed economy governance in Latin America, situated between economic developmentalism and political liberalisation. It revisits concepts of post-structural development deploying the notion of 'privatised Keynesianism.' Latin American governments, aiming to stimulate housing markets, exacerbated economic instability by subsidising debt-financed consumption of market-produced social housing. Contrary to optimistic expectations about the spillover effects of financial liberalisation, this approach led to increased household indebtedness and deteriorating housing conditions. The dissertation reveals how the shift to market-oriented social housing policies and overwhelming focus on macroeconomic demand stimulation, intensified the link between liberalised financial markets and housing beneficiaries. To avoid confronting the wealthy while addressing poverty, the new welfare regime rather relied on informal housing solutions, such as self-built homes and cooperative models, pointing to the inherent capitalist dichotomy between the right to housing and the right to the city. Those intricacies fundamentally altered state-market-citizen relations and the spatial dynamics of modern cities. |
| JEL: | R31 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127153 |
| By: | Dunia Kabunga, Philippe; Geenen, Sara; Iragi Mukotanyi, Francine; Bashizi, Anuarite |
| Abstract: | L’exploitation minière artisanale et à petite échelle (EMAPE) est san s dou te l’u n de pri ncipaux secteurs de l’économie informelle en RD Congo et ce, à l’instar de beaucoup d’autres pays en développement. Elle regroupe de millions d’individus à travers le monde (Delve, 2020). Son importance économique et sur l’emploi n’est plus à prouver. Cette étude se focalise sur les acteurs associatifs qui interviennent dans la protection sociale des exploitants. L’EMAPE étant hautement « hétérogène », elle regroupe aussi bien des individus que des groupes d’acteurs formels tels que des coopératives, et beaucoup d’autres acteurs informels comme par exemple de petits comités d’exploitants. Ceux-ci, ayant souvent existé avant les associations formelles, se révèlent encore être de plus en plus nécessaires pour les exploitants à cause aussi du poids que revêtent les organisations formelles sur les exploitants (Bikubanya & al., 2022b). C’est le cas pour les coopératives donnant l’image d’organisation d’extorsion (De Haan & Geenen, 2016) ; ou encore de captation en faveur des élites (Bashizi & Geenen, 2015) pour beaucoup d’exploitants. Dans ce papier, il va s’agir de voir la diversité des acteurs associatifs e t l es r ôles q u’ils j ouent d ans l a protection sociale (PS) des exploitants. L’étude est préliminaire et se base sur la revue de la littérature (non exhaustive) à partir de résultats de recherches menées dans quelques provinces et sites de l’est de la RD Congo. |
| Keywords: | RD Congo, DR Congo, exploitation minière artisanale et à petite échelle, artisanal mining |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:iob:wpaper:2025.06 |