Publication:
Tax Compliance in Romania

Simple item page
dc.contributor.authorRobayo-Abril, Monica
dc.contributor.authorBalaban, Georgiana
dc.contributor.authorWronski, Marcin
dc.date.accessioned2024-10-07T17:34:29Z
dc.date.available2024-10-07T17:34:29Z
dc.date.issued2024-10-07
dc.description.abstractThis paper uses statistical matching techniques to assess tax compliance and underreporting of labor income in Romania, overall and for different population groups, including among minimum wage workers, to understand the distributional implications and its links with minimum wage policy and design. Understanding the extent and distribution of tax evasion is relevant for enhancing domestic tax capacity, its redistributive impacts, and the links with social policy, including minimum wage policy. Estimating the average underreporting of income is challenging due to the significant underrepresentation of top incomes in survey data. After censoring, the average underreporting of income is 6 percent. When looking at the distribution of tax evasion, the analysis also shows significant underreporting of income in the bottom half of the income distribution. The results show that tax-reported income at the median of the income distribution equals only 90 percent of the true (survey) income, and at the 25th percentile, this share is 83 percent. Women are more tax compliant than men. Tax compliance varies across sectors of the economy, regions of the country, and demographic groups. Transport, construction, and food and accommodation are the sectors of the economy with the lowest tax compliance. The underreporting of income results in lower fiscal capacity for the country and may also lower the efficiency of means-tested social assistance. The underreporting of income significantly increases the share of minimum wage earners, which may impact the minimum wage policy.en
dc.identifierhttp://documents.worldbank.org/curated/en/099942210022439907/IDU19f6f41e41ba4e14ca91aab4140a8d24b9b4c
dc.identifier.doi10.1596/1813-9450-10940
dc.identifier.urihttps://hdl.handle.net/10986/42229
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10940
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectTAX COMPLIANCE
dc.subjectLABOR MARKET
dc.subjectMINIMUM WAGE
dc.subjectTAX DATA
dc.subjectEU-SILC
dc.subjectIMPUTATION
dc.subjectROMANIA
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.titleTax Compliance in Romaniaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/119 Link to data and reproducibility package
okr.crossref.titleTax Compliance in Romania
okr.date.disclosure2024-10-07
okr.date.lastmodified2024-10-02T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099942210022439907/IDU19f6f41e41ba4e14ca91aab4140a8d24b9b4c
okr.guid099942210022439907
okr.identifier.docmidIDU-9f6f41e4-ba4e-4ca9-aab4-40a8d24b9b4c
okr.identifier.doi10.1596/1813-9450-10940
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10940
okr.identifier.externaldocumentum34398670
okr.identifier.internaldocumentum34398670
okr.identifier.reportWPS10940
okr.import.id5412
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099942210022439907/pdf/IDU19f6f41e41ba4e14ca91aab4140a8d24b9b4c.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryRomania
okr.sectorCentral Government (Central Agencies)
okr.themeInclusive Growth,Mitigation,Participation and Civic Engagement,Gender,Human Development and Gender,Economic Policy,Social Protection,Social Development and Protection,Economic Growth and Planning,Environment and Natural Resource Management,Labor Market Policy and Programs,Climate change,Adaptation,Social Inclusion,Social Safety Nets,Labor Market Institutions
okr.topicMacroeconomics and Economic Growth::Income
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
okr.unitEFI-ECA-POV-Poverty and Equity (EECPV)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU19f6f41e41ba4e14ca91aab4140a8d24b9b4c.pdf
Size:
875.13 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU19f6f41e41ba4e14ca91aab4140a8d24b9b4c.txt
Size:
88.51 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers