{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DIME","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2024-03-28","version":"1"},"project_desc":{"authoring_entity":[{"name":"Monica Robayo-Abril","affiliation":"World Bank ","email":"mrobayo@worldbank.org"},{"name":"Georgiana Balaban","affiliation":"Romanian Ministry of Finance","email":"georgiana.balaban@mfinante.gov.ro"},{"name":"Marcin Wronski","affiliation":"World Bank and SGH Warsaw School of Economics","email":"mwronski@worldbank.org"}],"output":[{"type":"Working Paper","title":"Tax Compliance in Romania","description":"Policy Research Working Paper (PRWP) WPS10940","authors":"Monica Robayo-Abril, Georgiana Balaban, and Marcin Wronsk","uri":"http:\/\/documents.worldbank.org\/curated\/en\/099942210022439907\/IDU19f6f41e41ba4e14ca91aab4140a8d24b9b4c","doi":"https:\/\/doi.org\/10.1596\/1813-9450-10940"}],"datasets":[{"name":"EU statistics on income and living conditions","note":"Filename: SILC_2010_2020.dta Source: EU statistics. EU statistics on income and living conditions (EU-SILC)","access_type":"Not included in the package. More information about this is in the README file.","uri":"https:\/\/ec.europa.eu\/eurostat\/web\/microdata\/european-union-statistics-on-income-and-living-conditions"},{"name":"Romania Tax Authority Data","access_type":"Confidential and not included in the package. More information about this is in the README file.","note":"Tax administrative data is strictly confidential and provided by the Romanian Ministry of Finance, as a result of a strong collaboration. There is no standard procedure to request the data, as the data is not made publicly available"}],"software":[{"name":"Stata","version":"18"}],"scripts":[{"title":"Reproducibility package (code) for Tax Compliance in Romania","file_name":"RR_ROU_2024_100.zip","zip_package":"RR_ROU_2024_100.zip","date":"2024-03","description":"The code in this folder generates the tables and figures in the paper \"Tax Compliance in Romania\" by Monica Robayo-Abril, Georgiana Balaban, Marcin Wronsk\n","dependencies":"All dependencies are stored in the ado folder contained in the reproducibility package.","instructions":"See README in reproducibility package.","notes":"Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank."}],"title_statement":{"idno":"RR_ROU_2024_100","title":"Reproducibility package for Tax Compliance in Romania"},"reproducibility_status":{"type":"Data: All data is confidential and not included in the package (details provided in README); Code: All code files are included in the package; Outputs: All outputs are generated by code included in the reproducibility package; Reproducibility verification: Reviewers used data provided directly by the authors to conduct the reproducibility verification, and this is not included in the package."},"acknowledgment_statement":"This paper was prepared as part of a collaboration between the World Bank and the Ministry of Finance in Romania to inform the tax compliance agenda in the country. The document was part of the Poverty Program for Romania in the World Bank's Global Poverty and Equity Practice. The authors are grateful for comments received from Madalina Avram (Romanian Ministry of Finance), Anne Brockmeyer (Senior Economist, World Bank), and George Stefan (The Bucharest University of Economic Studies).  ","production_date":"2024-03","abstract":"This paper assesses tax compliance and under-reporting of 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 the distribution of tax evasion is relevant for enhancing domestic tax capacity, its redistributive impacts, and the links with social policy, including minimum wage policy. The estimate of 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%. 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% of the true (survey) income, while at the 25th percentile, this share is 83%. Women are also 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 under-reporting of income results in the lower fiscal capacity of the country and may also lower the efficiency of means-tested social assistance. The under-reporting of income significantly increases the share of minimum wage earners, which may impact the minimum wage policy.","geographic_units":[{"name":"Romania","code":"ROU","type":"Country"}],"keywords":[{"name":"tax compliance"},{"name":"labor market"},{"name":"minimum wage"},{"name":"tax data"},{"name":"EU-SILC"},{"name":"imputation"},{"name":"Romania"}],"topics":[{"id":"H24","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"H2","name":"Personal Income and Other Nonbusiness Taxes and Subsidies"},{"id":"H26","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"H2","name":"Tax Evasion and Avoidance"},{"id":"D31","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"D3","name":"Personal Income, Wealth, and Their Distributions"},{"id":"J31","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"J3","name":"Wage Level and Structure \u2022 Wage Differentials"},{"id":"J38","vocabulary":"Journal of Economic Literature (JEL)","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"J3","name":"Public Policy"}],"language":[{"name":"English","code":"EN"}],"data_statement":"The paper at hand uses two different data sets. The EU statistics on income and living conditions (EU-SILC) and Tax Authority Data for Romania. The authors do not have permission to share the data used in this paper. The data was used under strict data usage agreements. For more information please see the Data Availability Statement in the README file or contact the author Monica Robayo at mrobayo@worldbank.org","repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"technology_environment":"The code was reproduced on a computer with the following specifications:\n\u2013 OS: Windows 11 Enterprise\n\u2013 Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz\n\u2013 Memory available: 15.7 GB\n\u2013 Software version: Stata version 18","technology_requirements":"~3 minutes runtime","reproduction_instructions":"The replication of this package was divided into two stages due to data confidentiality. Initially, authors executed key code segments, generating intermediate data, which, along with logs, was provided for replication. This intermediate data is not included in the package due to access restrictions. Replicators interested in verifying these findings must obtain the dataset directly from its source (see Data section). However, currently, there are no agreements to obtain the Romanian tax authority data utilized in this package, making it challenging for replicators to access this particular portion of the data. Consequently, without these data, three of the tables won't be fully reproducible. For detailed steps on reproducing these parts of the tables, replicators are encouraged to consult the reproducibility report and log files included in this package. If there are any questions or need further clarification, replicators should contact Monica Robayo at mrobayo@worldbank.org.","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Monica Robayo","affiliation":"World Bank","email":"mrobayo@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}]},"tags":[{"tag":"DOI"},{"tag":"Open code"},{"tag":"Restricted data"}],"schematype":"script"}