Income hiding and informal redistribution: A lab-in-the-field experiment in Senegal

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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jdeveco.2018.11.004

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Marie Boltz et al., « Income hiding and informal redistribution: A lab-in-the-field experiment in Senegal », HAL-SHS : économie et finance, ID : 10.1016/j.jdeveco.2018.11.004


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We estimate the hidden cost of social obligations to redistribute exploiting data from a controlled setting in urban Senegal, which combines lab-in-the-field measures and out-of-lab follow-up data. We estimate a social tax of about 9 percent. When given the opportunity to get hidden income, individuals decrease by 26 percent the share of gains they transfer to kin — mostly outside the household — and increase health and personal expenses. We expand on prior literature by both identifying the individual cost of informal redistribution and then relating it to postexperiment resource-allocation decisions, and by disentangling intra- and interhousehold redistributive pressure.

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