Does Unequal Tax Burden Contribute to Women-Owned Businesses Leaving the Tax Net ?
This study investigates gender disparities in the tax burden in Addis Ababa, Ethiopia, using data on 2,320 taxpayers for 2011 and 2012. A quantile regression analysis is employed to control for firm characteristics such as sector, size, and age. The results show that women-owned businesses are more likely to operate in low-profit sectors and report lower sales and tax liabilities than men-owned businesses. However, women-owned businesses pay as much as men-owned businesses in taxes, suggesting that they are subject to a higher effective tax rate. This, in turn, may lead to women-owned businesses exiting the tax net at a higher rate. These findings suggest that gender disparities in tax compliance are not simply due to differences in firm characteristics but may also be due to biases in tax declaration and enforcement processes.
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| Language: | English |
| Published: |
Washington, DC: World Bank
2024-02-27
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| Subjects: | WOMEN AND TAX, EFFECTIVE TAX RATE, WOMEN RUN BUSINESSES, GENDER GAP, FISCAL POLICY, |
| Online Access: | http://documents.worldbank.org/curated/en/099413302272427285/IDU11431b4861e05814b171b2d41d6bc9d75d28d https://hdl.handle.net/10986/41129 |
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