Primary Outcomes (explanation)
We will not know which of the proxies will have meaningful variation until after we gain access to the administrative records. For example, one proxy for evasion that we are planning to use is based on employed individuals, whose wages are reported to the tax agency by the employee as well as by the employer. One proxy of tax evasion is then given by the gap between the amount reported by the employee and the amount reported by the employer. We are planning to construct other proxies too. For example, we can compare the number of dependents claimed by the subject in their tax forms to the actual number of dependents that they have as reported by third-parties. And, if we can find other sources of third-party reporting, we can construct other proxies in a similar spirit. If multiple proxies are viable, we will analyze them separately. Last, we will try to exploit the fact that self-employed individuals have more wiggle room than employed individuals when it comes to under-reporting. For example, if a particular piece of information increases the income reported by the self-employed but does not change the income reported by the salaried workers, that would suggest that the piece of information reduced tax evasion.