The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria

Wolfgang Frimmel, Martin Halla and Jörg Paetzold ()
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Jörg Paetzold: University of Salzburg

No 10529, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Does tax evasion run in the family? To answer this question, we study the case of the commuter tax allowance in Austria. This allowance is designed as a step function of the distance between the residence and the workplace, creating sharp discontinuities at each bracket threshold. The distance to these brackets is a strong determinant of compliance since it corresponds to the probability of detection. The match of different administrative data sources allows us to observe actual compliance behavior at the individual level across two generations. To identify the intergenerational causal effect in tax evasion behavior, we use the paternal distance-to-bracket as an instrumental variable for paternal compliance. We find that paternal noncompliance increases children's non-compliance by about 20 percent.

Keywords: intergenerational correlation; tax morale; intergenerational causal effect; tax evasion (search for similar items in EconPapers)
JEL-codes: A13 D14 H24 H26 J62 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2017-01
New Economics Papers: this item is included in nep-iue, nep-lab, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - revised version published in: Journal of the European Economic Association, 2019, 17 (6), 1843-1880,

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Related works:
Journal Article: The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria (2019)
Working Paper: The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria (2018)
Working Paper: The intergenerational causal effect of tax evasion: Evidence from the commuter tax allowance in Austria (2017)
Working Paper: The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria (2017)
Working Paper: The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria (2017)
Working Paper: The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria (2017)
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