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NOPOOR Policy Brief Nr.21: Evading the family tax: a costly hide-and-seek strategy - Evidence from a lab-in-the-field experiment in Senegal

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This study estimates the hidden cost of informal redistribution in urban Senegal. It is based on a lab-in-the-field experiment combined with a small-scale randomized controlled trial. The results show high costs associated to avoiding the family tax, a large majority of people being to pay a high cost to keep their gains in private. Moreover, when given the opportunity to hide, people decrease the transfers to kin and increase private and health expenses.

Image: ©IRD - Véronique Chaffard