Do students behave like real taxpayers in the lab? Evidence from a real effort tax compliance experiment
Journal of Economic Behavior and Organization
© 2015 Elsevier B.V. This is the author accepted manuscript. The final version is available from Elsevier via the DOI in this record.
Reason for embargo
We report on data from a real-effort tax compliance experiment using three subject pools: students, who do not pay income tax; company employees, whose income is reported by their employer; and self-employed taxpayers, who are responsible for filing and payment. While compliance behavior is unaffected by changes in the level of, or information about the audit probability, higher fines increase compliance. We find subject pool differences: self-assessed taxpayers are the most compliant, while students are the least compliant. Through a simple framing manipulation, we show that such differences are driven by norms of compliance from outside the lab.
Vol. 124, pp. 102-114