Work

An experimental study on institutions and social norms of tax payment

Year: 2025

Type: article

Abstract: The production of public goods, which are fundamental to well-functioning societies, requires the payment of taxes, but taxpayers have clear incentives to free-ride because of the low probability of sanctions. Despite these incentives, many do pay, and research suggests that non-monetary mechanisms are important drivers. Here, we focus on social norms and propose that they drive tax paying and mediate the relationship between institutional quality and tax payments, potentially leading to either virtuous or vicious feedback cycles. Using two studies conducted in Italy, a nationally representative survey and vignette experiment (NStudy I = 1,218) and an online behavioural experiment (NStudy II = 448), we show that: (i) social norms and perceptions of institutional quality predict tax payments; (ii) social norms affect tax payment intentions and behaviour; and (iii) institutional context influences these dynamics either positively or negatively through social norms. Our results highlight the essential role of social norms in shaping tax payments and their link to context-specific institutional factors.

Source: European Sociological Review

DOI: 10.1093/esr/jcaf057

Authors: Gian Luca Pasin, Aron Szekely, Flaminio Squazzoni

Institutions: National Research Council, Institute of Cognitive Sciences and Technologies, Collegio Carlo Alberto, University College London, University of Milan

Language: English

Topic: Taxation and Compliance Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $5,323