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Tax Compliance and Information Provision: A Field Experiment with Small Firms

Doerrenberg, Philipp; Schmitz, Jan - Institute for the Study of Labor (IZA) - 2015

We study a field experiment on tax compliance in Slovenia. Small accounting companies were randomly assigned to an untreated control group and two treatment groups. Companies in the first treatment group received a letter that highlighted the importance of paying taxes and informed about the...

Persistent link: https://www.econbiz.de/10011269606

Ambiguity on Audits and Cooperation in a Public Goods Game

Dai, Zhixin; Hogarth, Robin M.; Villeval, Marie Claire - Institute for the Study of Labor (IZA) - 2014

update their beliefs about the probability of being audited, both before and after audits are definitely withdrawn. We find … that when individuals have initially experienced systematic audits, they decrease both their beliefs and their … contributions almost immediately after audits are withdrawn. In contrast, when audits were initially less frequent and more …

Persistent link: https://www.econbiz.de/10010739419

Work and Tax Evasion Incentive Effects of Social Insurance Programs: Evidence from an Employment-Based Benefit Extension

Bergolo, Marcelo; Cruces, Guillermo - Institute for the Study of Labor (IZA) - 2014

This article studies how social insurance programs shape individual's incentives to take up registered employment and to report earnings to the tax authorities. The analysis is based on a social insurance reform in Uruguay that extended healthcare coverage to the dependent children of registered...

Persistent link: https://www.econbiz.de/10010884195

Experimental Evidence on the Relationship between Tax Evasion Opportunities and Labor Supply

Doerrenberg, Philipp; Duncan, Denvil - Institute for the Study of Labor (IZA) - 2012

Motivated by the observation that access to evasion opportunities is distributed heterogeneously across the labor market, this paper examines the extent to which labor supply elasticities with respect to tax rates depend on such evasion opportunities. We first discuss the channels through which...

Persistent link: https://www.econbiz.de/10010884307

Circumstantial Risk: Impact of Future Tax Evasion and Labor Supply Opportunities on Risk Exposure

Doerrenberg, Philipp; Duncan, Denvil; Zeppenfeld, … - Institute for the Study of Labor (IZA) - 2014

This paper examines whether risk-taking in a lottery depends on the opportunity to respond to the lottery outcome through additional labor effort and/or tax evasion. Previous empirical attempts to answer this question face identification issues due to self-selection into jobs that facilitate tax...

Persistent link: https://www.econbiz.de/10010884336

Tax Incidence in the Presence of Tax Evasion

Doerrenberg, Philipp; Duncan, Denvil - Institute for the Study of Labor (IZA) - 2014

This paper studies the effect of tax evasion on the economic incidence of sales taxes. We design a laboratory experiment in which buyers and sellers trade a fictitious good in double auction markets. A per-unit tax is imposed on sellers, and sellers in the treatment group are provided the...

Persistent link: https://www.econbiz.de/10010884352

Prospect Theory and Tax Evasion: A Reconsideration of the Yitzhaki Puzzle

Piolatto, Amedeo; Rablen, Matthew D. - Institute for the Study of Labor (IZA) - 2013

The standard expected utility model of tax evasion predicts that evasion is decreasing in the marginal tax rate (the Yitzhaki puzzle). The existing literature disagrees on whether prospect theory overturns the puzzle. We disentangle four distinct elements of prospect theory and find loss...

Persistent link: https://www.econbiz.de/10010884369

The Last Refuge of a Scoundrel? Patriotism and Tax Compliance

Konrad, Kai A.; Qari, Salmai - Institute for the Study of Labor (IZA) - 2009

We study the effects of patriotism on tax compliance. In particular, we assume that individuals feel a (random draw of) warm glow from honestly paying their taxes. A higher expected warm glow reduces the government's optimal audit probability and yields higher tax compliance. Second, individuals...

Persistent link: https://www.econbiz.de/10005017520

Detecting Wage Under-reporting Using a Double Hurdle Model

Elek, Peter; Kollo, Janos; Reizer, Balázs; Szabó, … - Institute for the Study of Labor (IZA) - 2011

We estimate a double hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation, and an unreported cash supplement). We estimate the probability of under-reporting for...

Persistent link: https://www.econbiz.de/10009403378

Tax Evasion, Minimum Wage Non-Compliance and Informality

Basu, Arnab K.; Chau, Nancy; Siddique, Zahra - Institute for the Study of Labor (IZA) - 2011

We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of informality, we use measures of the extent of tax evasion, the extent of minimum wage non-compliance, and the size of the informal workforce. Our approach allows us to examine (i) the...

Persistent link: https://www.econbiz.de/10009403380