The Tax Elasticity of Formal Work in Sub-Saharan African Countries.
When seeking to increase their tax revenues, policy makers face a likely tradeoff between decreasing personal income tax rates (making formalizing more attractive and potentially contributing to revenue) and alternatively raising tax rates (potentially slowing down the formalization of the economy i...
| Publicado en: | Journal of Development Studies Vol. 60; no. 2; pp. 217 - 245 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Taylor & Francis Ltd
Feb2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=175035988&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 175035988 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00220388 JDS jtl: Journal of Development Studies issn: 00220388 maglogo: N pubinfo: dt: Feb2024 vid: 60 iid: 2 pid: 377 pub: Taylor & Francis Ltd artinfo: ui: 175035988 10.1080/00220388.2023.2279477 ppf: 217 ppct: 28 formats: fmt: – @attributes: type: T db: hlh ui: 175035988 – @attributes: type: P db: hlh ui: 175035988 tig: atl: The Tax Elasticity of Formal Work in Sub-Saharan African Countries. aug: au: McKay, Andy Pirttilä, Jukka Schimanski, Caroline affil: Department of Economics, University of Sussex, Brighton, United Kingdom Faculty of Social Science, University of Helsinki, VATT, and UNU-WIDER, Helsinki, Finland Department of Economics, Pontifical Catholic University Peru, Lima, Peru su: Tanzania Sub-Saharan Africa Ghana Informal sector Taxation Income tax Internal revenue Tax rates Elasticity Business revenue sug: subj: Informal sector Taxation Income tax Tanzania Sub-Saharan Africa Ghana Public Finance Activities Internal revenue Tax rates Elasticity Business revenue keyword: Developing countries informality labour supply taxation Developing countries informality labour supply taxation ab: When seeking to increase their tax revenues, policy makers face a likely tradeoff between decreasing personal income tax rates (making formalizing more attractive and potentially contributing to revenue) and alternatively raising tax rates (potentially slowing down the formalization of the economy if people prefer informal employment). Evidence on formal versus informal earnings and job characteristics in different sectors is limited in African countries, and in particular very little is known about the impact of tax changes on the extent of informality. This paper therefore estimates the personal income tax responsiveness of the extensive margin of formality, i.e. the propensity to be a formal as opposed to an informal worker, for Ghana, Rwanda, Tanzania, and Uganda, using repeated cross-sections of household data and applying grouping estimator techniques. Perhaps because of labour demand constraints and other frictions, the paper finds non-significant relations between the formal employment share and the formal-informal earnings differences. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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