<u>Table 3: Trust and tax morale</u>

|Dependent variable: Tax morale<br>(1)<br>Ordered probit|(2)<br>OLS|(3)<br>IV|(4)<br>IV|
|---|---|---|---|
|**PanelA:2ndstaeforta**|**xmorale**|||
|**g **<br>Trust in public institutions<br>0.0595<br>|<br>0.0900<br>|1.121*<br>|1.007**<br>|
|(0.0517)<br>Trust in the neighbourhood<br>0.0741***<br>|(0.0570)<br>0.0615<br>|(0.632)<br>1.043***<br>|(0.501)<br>1.029***<br>|
|(0.0199)<br>|(0.0263)|(0.240)|(0.286)|
|_Employment status_<br>Full-time employee<br>-1.135***<br>|-0.498***<br>|-0.860***<br>|-0.890***<br>|
|(0.412)<br>Part-time employee<br>-0.988**<br>(0.389)|(0.0750)<br>-0.247**<br>(0.0712)|(0.290)<br>-0.479*<br>(0.274)|(0.331)<br>-0.503*<br>(0.303)|
|Self employed<br>-1.074**<br>(0417)|-0.447***<br>(00655)|-0.761***<br>(0256)|-0.769***<br>(0277)|
|.<br>ld<br>12***|.<br>*|.<br>***|.<br>***|
|Unempoye<br>-.09<br>|-0.607<br>|-0.768<br>|-0.779<br>|
|(0.446)<br>Retired<br>-1.241***<br>|(0.238)<br>-0.578**<br>|(0.260)<br>-0.704**<br>|(0.247)<br>-0.726**<br>|
|(0.404)<br>Student<br>-1.120***|(0.178)<br>-0.434|(0.279)<br>-0.693***|(0.311)<br>-0.736***|
|(0.394)<br>Housewife<br>-1.080**|(0.199)<br>-0.341*|(0.198)<br>-0.538*|(0.176)<br>-0.560*|
|(0.453)<br>_Dhift_|(0.142)|(0.294)|(0.317)|
|_emograpc acors_<br>Log (age)<br>0.201***<br>|0.150<br>|0.202**<br>|0.114<br>|
|(0.0696)<br>Religiosity<br>0.00277<br>|(0.0951)<br>0.162<br>|(0.0823)<br>0.270<br>|(0.0836)<br>0.275<br>|
|(0.215)<br>Gender<br>0.0860|(0.324)<br>0.128|(0.387)<br>0.103|(0.383)<br>0.116|
|(0.0955)<br>Education<br>0.0147|(0.139)<br>0.0166|(0.144)<br>0.0269*|(0.138)<br>0.0221|
|(0.0199)<br>_Maritalstatus_|(0.0227)|(0.0143)|(0.0202)|
|<br>Single<br>-0.223**<br>|-0.311*<br>|0.0440<br>|0.00910<br>|
|(0.108)<br>Living together<br>-0.193<br>|(0.124)<br>-0.217<br>|(0.267)<br>0.293<br>|(0.244)<br>0.320<br>|
|(0.339)<br><br>|(0.361)<br>|(0.387)<br>|(0.330)<br>|
|Married<br>-0.155<br>|-0.154<br>|0.119<br>|0.133<br>|
|(0.102)<br>Divorced<br>-0.294***<br>(0.0646)|(0.0982)<br>-0.270**<br>(0.0576)|(0.187)<br>-0.246<br>(0.436)|(0.151)<br>-0.238<br>(0.389)|
|Separated<br>-0.751**|-0.991|-0.719|-0.719|
|(0.309)<br>_Eiitti_|(0.693)|(0.662)|(0.620)|
|_conomc suaons_<br>Upper class<br>-0.226<br>|-0.448<br>|-0.593<br>|-0.731*<br>|
|(0.237)<br>Lower class<br>0.220**<br>|(0.371)<br>0.272*<br>|(0.447)<br>-0.0261<br>|(0.436)<br>-0.00720<br>|
|(0.0860)<br>Working class<br>0.133|(0.113)<br>0.102|(0.0984)<br>0.000530|(0.0953)<br>-0.00450|
|(0.132)<br>Upper-middle class<br>-0.181***|(0.118)<br>-0.388*|(0.0761)<br>-0.400*|(0.0759)<br>-0.470*|
|(0.0537)|(0.147)|(0.236)|(0.249)|
|Financialsatisfaction<br>000918**|000856*|-00323|-00330*|
|<br>.<br>(0.00364)<br>|.<br>(0.00280)|.<br>(0.0221)|.<br>(0.0185)|
|_Other individual characteristics_<br>Ethnolinguistic and religious fragmentation<br>0.307<br>|0.501<br>|1.033**<br>|0.960***<br>|
|(0.242)<br>Perception of respect the human rights<br>-0.0505***|(0.362)<br>-0.0464|(0.477)<br>-0.230***|(0.357)<br>-0.213***|
|(0.0134)<br>Importance of freedom of speech<br>-0.0968<br>(0.110)|(0.0249)<br>-0.123<br>(0.142)|(0.0775)<br>0.0729<br>(0.102)|(0.0779)<br>0.0622<br>(0.0958)|
|Chief wage earner of the household<br>-0.0873<br>(00623)|-0.0848<br>(0123)|-0.166<br>(0174)|-0.134<br>(0157)|
|.<br>Attitude towards redistribution<br>0.0126<br>|.<br>0.00848<br>|.<br>0.00851<br>|.<br>0.00647<br>|
|(0.00976)<br><br>*|(0.00865)<br>|(0.0152)<br>|(0.0148)<br>|
|Political position<br>-0.0188<br>(0.0110)|-0.0106<br>(0.00502)|-0.0363<br>(0.0283)|-0.0370<br>(0.0235)|
|**Panel B: 1st stage for Trust in th**<br>_Ln._[1 + (_slave exports_)_/land area_]|**e neighbourh**|**ood**<br>-0.042**|-0.038***|
|<br>Average trust in the neighbourhood||(0.009)<br>0.544***<br>0080|(0.006)<br>0.51***<br>0077|
|Attiititti||(.)<br>0105|(.)<br>0099|
|verage rus n nsuons||-.<br>(0.066)|-.<br>(0.046)|
|**Panel C: 1st stage for trust in pu**<br>_Ln._[1 + (_slave exports_)_/land area_]|**blic institut**|**ions**<br>0.025|0.025|
|Average trust in the neighbourhood||(0.015)<br>0.087**|(0.011)<br>0.080**|
|Averagetrustininstitutions||(0.022)<br>033***|(0.024)<br>032***|
|||.<br>(0.038)|.<br>(0.038)|
|F-stat of excl. IVs<br>||22.34<br>|20.15<br>|
|Hansen J statistics<br>||0.014<br>|0.021<br>|
|Hansen J p-value<br>Country fxed efects<br>Yes<br>Location fxed efects<br>Yes|Yes<br>Yes|(0.906)<br>Yes<br>No|(0.886)<br>Yes<br>Yes|
|Observations<br>3,837|3,837|3,511|3,511|

Notes. All estimates use the weights. Robust standard errors clustered at the country level in parentheses. *** p _<_ 0.01, ** p _<_ 0.05, * p _<_ 0.1 24