Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82081
Authors: 
Dreyer Lassen, David
Year of Publication: 
2003
Series/Report no.: 
EPRU Working Paper Series 2003-01
Abstract: 
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.
Subjects: 
informal sector
ethnic fragmentation
voluntary tax compliance
JEL: 
H26
J15
O17
Document Type: 
Working Paper

Files in This Item:
File
Size
263.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.