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The Origins of Social Contracts: Attitudes toward Taxation in Urban Nigeria

Author

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  • Cristina Bodea
  • Adrienne LeBas
Abstract
How do social contracts come into being? This paper argues that norm adoption plays an important and neglected role in this process. Using novel data from urban Nigeria, we examine why individuals adopt norms favoring a citizen obligation to pay tax where state enforcement is weak. We find that public goods delivery by the state produces the willingness to pay tax, but community characteristics also have a strong and independent effect on both social contract norms and actual tax payment. Individuals are less likely to adopt pro-tax norms if they have access to community provision of security and other services. In conflict-prone communities, where “self-help” provision of club goods is less effective, individuals are more likely to adopt social contract norms. Finally, we show that social contract norms substantially boost tax payment. This paper has broad implications for literatures on state formation, taxation, clientelism, and public goods provision.

Suggested Citation

  • Cristina Bodea & Adrienne LeBas, 2013. "The Origins of Social Contracts: Attitudes toward Taxation in Urban Nigeria," CSAE Working Paper Series 2013-02, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2013-02
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    Cited by:

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    2. Ali, Merima & Fjeldstad, Odd-Helge & Sjursen, Ingrid Hoem, 2014. "To Pay or Not to Pay? Citizens’ Attitudes Toward Taxation in Kenya, Tanzania, Uganda, and South Africa," World Development, Elsevier, vol. 64(C), pages 828-842.
    3. Broadberry, Stephen & Gardner, Leigh, 2016. "Economic Development In Africa And Europe: Reciprocal Comparisons," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 34(1), pages 11-37, March.
    4. Pamela Lenton & Mike Masiye & Paul Mosley, 2017. "Taxpayer’s dilemma: how can ‘fiscal contracts’ work in developing countries?," Working Papers 2017004, The University of Sheffield, Department of Economics.
    5. Paul Mosley & Abdul‐Gafaru Abdulai, 2020. "The political economy of progressive fiscal contracts in Africa and Latin America," Development Policy Review, Overseas Development Institute, vol. 38(4), pages 411-427, July.

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