Ethnic divisions, trust, and the size of the informal sector
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Ethnic divisions, trust, and the size of the informal sector. / Lassen, David Dreyer.
I: Journal of Economic Behavior & Organization, Bind 63, Nr. 3, 2007, s. 423-438.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Ethnic divisions, trust, and the size of the informal sector
AU - Lassen, David Dreyer
N1 - JEL Classification: H26, J15, O17
PY - 2007
Y1 - 2007
N2 - This paper investigates the relationship between ethnic fractionalization and the size of the informal, or hidden, 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 we present empirical evidence at the macro level in a cross-section of more than 50 countries that more ethnically fractionalized societies have significantly larger informal sectors
AB - This paper investigates the relationship between ethnic fractionalization and the size of the informal, or hidden, 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 we present empirical evidence at the macro level in a cross-section of more than 50 countries that more ethnically fractionalized societies have significantly larger informal sectors
KW - Faculty of Social Sciences
KW - informal sector
KW - ethnic fractionalization
KW - ethnic divisions
KW - public finance
KW - trust
U2 - 10.1016/j.jebo.2005.07.001
DO - 10.1016/j.jebo.2005.07.001
M3 - Journal article
VL - 63
SP - 423
EP - 438
JO - Journal of Economic Behavior & Organization
JF - Journal of Economic Behavior & Organization
SN - 0167-2681
IS - 3
ER -
ID: 832112