Arbeitspapier
Ethnic Divisions and the Size of the Informal Sector
This paper investigates the relationship between ethnic fragmentation and the size of the informal economy. Recent experimental and empirical research links, in turn, ethnicity and trust, and trust and tax compliance. In addition, recent empirical studies have identified an unwillingness to contribute to public goods benefiting other ethnic groups. Combining these insights, we argue that increasing ethnic fractionalization decreases voluntary tax compliance, and present empirical evidence at the macro level in a cross-section of more than fifty countries, that more ethnically fragmented societies have significantly larger informal sectors.
- Language
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Englisch
- Bibliographic citation
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Series: EPRU Working Paper Series ; No. 2003-01
- Classification
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Wirtschaft
Tax Evasion and Avoidance
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- Subject
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informal sector
ethnic fragmentation
voluntary tax compliance
Informeller Sektor
Ethnische Gruppe
Steuermoral
Welt
- Event
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Geistige Schöpfung
- (who)
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Dreyer Lassen, David
- Event
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Veröffentlichung
- (who)
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University of Copenhagen, Economic Policy Research Unit (EPRU)
- (where)
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Copenhagen
- (when)
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2003
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dreyer Lassen, David
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Time of origin
- 2003