IDEAS home Printed from https://ideas.repec.org/a/spr/jesaex/v10y2024i2d10.1007_s40881-024-00160-y.html
   My bibliography  Save this article

Information about changes in platform economy taxation diminishes optimism regarding future use

Author

Listed:
  • Jantsje M. Mol

    (University of Amsterdam
    Tinbergen Institute)

  • Catherine Molho

    (University of Amsterdam
    VU Amsterdam)

Abstract

Some economic interactions are based on trust, others on monetary incentives or monitoring. In the tax compliance context, the monitoring approach creates compliance based on audits and fines (enforced compliance), in contrast to the trust-based (voluntary compliance) approach, which is based on taxpayers’ willingness to comply. Here, we examine how changes in taxation regarding platform economy revenues affect intended labor supply on such platforms. New EU legislation, effective from 2023, will mandate data sharing between platforms and tax authorities across Europe, thus resulting in increased monitoring. We investigate how this upcoming shift in monitoring power affects the intended use of platforms and how it may interact with users’ trust. We use a survey among platform workers (N = 626) in the Netherlands to examine views of the proposed regulation change, corrected for the proportion of platform income and several measures of trust. We experimentally manipulate information by either informing participants about the upcoming monitoring change or not. Results show that informing respondents about the change negatively affects expected supply of labor, and this effect is independent of respondents’ trust. We discuss the policy implications of these results.

Suggested Citation

  • Jantsje M. Mol & Catherine Molho, 2024. "Information about changes in platform economy taxation diminishes optimism regarding future use," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 10(2), pages 330-345, December.
    • Handle: RePEc:spr:jesaex:v:10:y:2024:i:2:d:10.1007_s40881-024-00160-y
    DOI: 10.1007/s40881-024-00160-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40881-024-00160-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40881-024-00160-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cristina Bicchieri & Enrique Fatas & Abraham Aldama & Andrés Casas & Ishwari Deshpande & Mariagiulia Lauro & Cristina Parilli & Max Spohn & Paula Pereira & Ruiling Wen, 2021. "In science we (should) trust: Expectations and compliance across nine countries during the COVID-19 pandemic," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-17, June.
    2. James Alm, 2019. "What Motivates Tax Compliance?," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 353-388, April.
    3. Kirchler, Erich & Hoelzl, Erik & Wahl, Ingrid, 2008. "Enforced versus voluntary tax compliance: The "slippery slope" framework," Journal of Economic Psychology, Elsevier, vol. 29(2), pages 210-225, April.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Gangl, Katharina & Torgler, Benno & Kirchler, Erich & Hofmann, Eva, 2014. "Effects of supervision on tax compliance: Evidence from a field experiment in Austria," Economics Letters, Elsevier, vol. 123(3), pages 378-382.
    6. Joel Slemrod, 2019. "Tax Compliance and Enforcement," Journal of Economic Literature, American Economic Association, vol. 57(4), pages 904-954, December.
    7. Holler, Marianne & Hoelzl, Erik & Kirchler, Erich & Leder, Susanne & Mannetti, Lucia, 2008. "Framing of information on the use of public finances, regulatory fit of recipients and tax compliance," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 597-611, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Alm & Laura Rosales Cifuentes & Carlos Mauricio Ortiz Niño & Diana Rocha, 2019. "Can Behavioral “Nudges” Improve Compliance? The Case of Colombia Social Protection Contributions," Games, MDPI, vol. 10(4), pages 1-23, October.
    2. Lancee, Bora & Rossel, Lucia & Kasper, Matthias, 2023. "When the agency wants too much: Experimental evidence on unfair audits and tax compliance," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 406-442.
    3. James Alm & Lilith Burgstaller & Arrita Domi & Amanda März & Matthias Kasper, 2023. "Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance," Economies, MDPI, vol. 11(9), pages 1-22, September.
    4. Kasper, Matthias & Alm, James, 2022. "Audits, audit effectiveness, and post-audit tax compliance," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 87-102.
    5. Matthias Kasper & James Alm, 2022. "Does the Bomb-crater Effect Really Exist? Evidence from the Laboratory," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 78(1-2), pages 87-111.
    6. Dossè Mawussi Djahini‐Afawoubo, 2024. "Understanding tax payment behaviour in the West African Economic and Monetary Union: The role of perceived detection capacity and honesty," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 795-823, March.
    7. James Alm, 2024. "Tax Compliance, Technology, Trust, and Inequality in a Post-Pandemic World," Working Papers 2404, Tulane University, Department of Economics.
    8. Sanjit Dhami & Narges Hajimoladarvish, 2020. "Mental Accounting, Loss Aversion, and Tax Evasion: Theory and Evidence," CESifo Working Paper Series 8606, CESifo.
    9. James Alm & Antoine Malézieux, 2021. "40 years of tax evasion games: a meta-analysis," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 699-750, September.
    10. Adamu Jibir & Musa Abdu & Tasiu Muhammad, 2020. "Analysis of Tax Compliance in Sub-Saharan Africa: Evidence from Firm-Level Study," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 119-142, December.
    11. Martin Dufwenberg & Katarina Nordblom, 2022. "Tax evasion with a conscience," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(1), pages 5-29, February.
    12. Marcelo Bergolo & Rodrigo Ceni & Guillermo Cruces & Matias Giaccobasso & Ricardo Perez-Truglia, 2023. "Tax Audits as Scarecrows: Evidence from a Large-Scale Field Experiment," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 110-153, February.
    13. Antinyan, Armenak & Asatryan, Zareh, 2019. "Nudging for tax compliance: A meta-analysis," ZEW Discussion Papers 19-055, ZEW - Leibniz Centre for European Economic Research.
    14. Ho Fai Chan & Uwe Dulleck & Jonas Fooken & Naomi Moy & Benno Torgler, 2023. "Cash and the Hidden Economy: Experimental Evidence on Fighting Tax Evasion in Small Business Transactions," Journal of Business Ethics, Springer, vol. 185(1), pages 89-114, June.
    15. James Alm & Peter Gerbrands & Erich Kirchler, 2022. "Using “responsive regulation” to reduce tax base erosion," Regulation & Governance, John Wiley & Sons, vol. 16(3), pages 738-759, July.
    16. Nathalie Etchart-vincent & Marisa Ratto & Emmanuelle Taugourdeau, 2024. "Why should I comply with taxes if others don't?: an experimental study testing informational effects," Working Papers hal-04635966, HAL.
    17. Aloys Prinz, 2019. "Learning (Not) to Evade Taxes," Games, MDPI, vol. 10(4), pages 1-18, September.
    18. Zhifeng Chen & Haiming Hang & Weisha Wang, 2024. "COVID-19 Policy Actions, Trust in Government and Tax Compliance Intentions: A Study of the British Self-Employment Income Support Scheme," Journal of Business Ethics, Springer, vol. 193(2), pages 441-458, August.
    19. Sinning, Mathias & Zhang, Yinjunjie, 2023. "Social norms or enforcement? A natural field experiment to improve traffic and parking fine compliance," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 43-60.
    20. James Alm & William D. Schulze & Carrie von Bose & Jubo Yan, 2019. "Appeals to Social Norms and Taxpayer Compliance," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 638-666, October.

    More about this item

    Keywords

    Platform economy; Taxation; Online experiment; Enforced compliance; Voluntary compliance; Trust;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jesaex:v:10:y:2024:i:2:d:10.1007_s40881-024-00160-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.