Klarita Gërxhani

Explaining gender differences in tax evasion: the case of Tirana, Albania

Abstract Recently, a considerable amount of research has focused on the evidence of gender differences in corruption. Research conducted on another predatory activity, tax evasion, similarly shows strong differences between womens and mens behaviors. This paper tests this finding in a transition country using a unique data set collected from a field survey of households in Tirana, Albania in 2000. Acknowledging that scholars generally explain gender differences in economic behavior either as biological or by social/psychological role theory, this paper examines a broader range of explanations for gender differences in tax evasion. Taking new institutional theory as a starting point to explain the differences in mens and womens tax behaviors, this paper discusses the relative importance of education, income, age, and number of children, among other factors. Finally, it explores the explanations provided by feminist theory and to what extent these can be integrated into the new institutional theoretical framework.

Financial Satisfaction and (in)formal Sector in a Transition Country

This paper examines the relationship between working in the formal or informal sector and self-reported individual financial satisfaction in a country in transition. It does so by allowing for individual heterogeneity in terms of perceived financial insecurity and tax morale. The empirical analysis uses a dataset for Albania, a country in transition. The method applied is the ‘self-administered questionnaire’, which combines personal contacts with written questionnaire. The results indicate that, for most individuals, working in the informal sector has negative effects on their self reported financial satisfaction. For some individuals, however, this effect is positive. The characteristic defining these two groups of individuals is their attitude towards the perceived financial insecurity related to not paying taxes. These findings have important implications, in particular for transition countries with large informal sectors. Given the involuntary participation in the informal sector in these countries, the majority of individuals working in this sector will remain financially dissatisfied as long as they have no other social safety net.

The emergence of employer information networks in an experimental labor market

We use laboratory experiments to investigate whether employer networks emerge that facilitate information sharing about the trustworthiness of job candidates. The design allows us to distinguish between mechanisms underlying the relations among employers and those between employers and workers. One type of network we observe is an ‘anonymity network’ where information is anonymously and voluntarily provided as a collective good for all employers to use. The other type is a ‘reciprocity network’ where information sharing is driven by the rewarding of previously given information by the requestor. Recruitment through these networks leads to higher earnings for both employers and workers.

Formation of Social Capital in Central and Eastern Europe: Understanding the Gap Vis-a-Vis Developed Countries

Recent Eurobarometer survey data are used to document and explain the stock of social capital in 27 European countries. Social capital in Central and Eastern Europe – measured by civic participation and access to social networks – lags behind that in Western European countries. Using regression analysis of determinants of individual stock of social capital, we find that this gap persists when we account for individual characteristics and endowments of respondents but disappears completely after we control for aggregate measures of economic development and quality of institutions. Informal institutions such as prevalence of corruption appear particularly important.

‘I am not alone’: Understanding public support for the welfare state

This article explores to what extent and how individuals’ welfare state attitudes relate to their subjective assessment of the available social support. Using various sociological and sociopsychological theories the authors first provide a theoretical analysis of the micro–macro links between perceived social support (micro), social trust in support availability (macro) and public attitudes towards welfare states (micro). An empirical test based on a large cross-country dataset of 31,122 respondents in 25 European countries shows that the more welfare is provided by the state, the less of it is desired in countries where individuals have the general belief that they can rely on each other for support. Importantly, only when considered jointly, do welfare state provision and social trust in support availability become essential in explaining welfare state attitudes.

Making the right move. Investigating employers’ recruitment strategies

Purpose – The purpose of this paper is to investigate employers’ recruitment strategies to address distinct job-related agency problems before establishing an employment relationship. Insights from agency theory and the social embeddedness perspective are combined to hypothesize whether and why employers adapt their recruitment strategies to the job type (differing in level of discretion) for which they are externally hiring. Design/methodology/approach – The hypotheses are empirically tested using data from a survey of 288 Dutch employers. Questions were asked about the two types of jobs. Multi-level logistic regression analysis is applied to investigate the effect of social context on the choice of recruitment strategy. In addition to that, separate analyses are conducted for the two job types, using logistic regression analysis. Findings – As predicted, employers have the tendency to use informal recruitment channels more often for jobs with high degree of discretion (i.e. managerial, professional, and...

Time lag and communication in changing unpopular norms

Humans often coordinate their social lives through norms. When a large majority of people are dissatisfied with an existing norm, it seems obvious that they will change it. Often, however, this does not occur. We investigate how a time lag between individual support of a norm change and the change itself hinders such change, related to the critical mass of supporters needed to effectuate the change, and the (im)possibility of communicating about it. To isolate these factors, we utilize a laboratory experiment. As predicted, we find unambiguous effects of time lag on precluding norm change; a higher threshold for a critical mass does so as well. Communication facilitates choosing superior norms but it does not necessarily lead to norm change when the uncertainty on whether there will be a norm change in the future is high. Communication seems to help coordination on actions at the present but not the future. Hence, the uncertainty driven by time lag makes individuals choose the status quo, here the unpopular norm.

Experimental Game Theory and Its Application in Sociology and Political Science

This is an open access special issue distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.