Income-Tax Transparency and Its Effect Towards Redistribution Evidence From a Natural Experiment in Norway

Abstract

Taking advantage of the natural experiment in Norway, this paper shows the effect of the online publication of income-tax record on people’s attitude towards redistribution. The analysis employs a two-stage least square regression method and uses data from the International Social Survey Program (ISSP) 1999 and 2009. This study finds that online publication leads to a more efficient level of support for redistributive policies. This result offers an alternative for the government to boost the redistribution initiative to an optimal level without any conflict with political interest. It also adds a new perspective to the rich literature in economic inequality.