WP 32 - Tax evasive behaviour and gender in a transition country

Abstract

In this paper, we provide a structural explanation of gender difference with respect to tax evasion. A unique data set, collected from a field survey of households in Albania, allows us to test and explore the established fact, in a transition country. The results show that women tend to evade taxes less than men, even after controlling for socio-economic and demographic characteristics (e.g., age, family status, education, income). Starting from neo-institutional theory, the paper analyzes the explanatory power of this theory where it concerns the differences in men’s and women’s tax behavior. Acknowledging the fact that gender differences in economic behavior are generally explained either as biological or by social/psychological role theory, this paper also discusses possible explanations as suggested in feminist economic research. Using the data available, some main hypothesis are articulated, tested and evaluated.