Republic of Moldova

International consultant for guiding the implementation of Randomized Control Trial on tax compliance in the Republic of Moldova

Vacancy Number: Pr16/01431

Location:	Chisinau, Moldova
Application Deadline:	06 Nov 2016, 23:59 (GMT+2:00)
Type of Contract:	Individual Contract
Starting date:	14 Nov 2016
Reference to the project:	Moldova Social Innovation Hub
Expected Duration of Assignment:	20 working days, during the period November, 2016 – July, 2017
Submission Instructions: Proposals should be submitted online by pressing the "Apply Online" button, no later than 6 November, 2016. Requests for clarification only must be sent by standard electronic communication to the following e-mail: alexandru.oprunenco@undp.org. UNDP will respond by standard electronic mail and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all applicants.   This job announcement is also placed on: https://jobs.undp.org/cj_view_job.cfm?cur_job_id=69196
Supporting Documents: Termes of Reference Individual Consultant Procurement Notice Personal History Form (P11) UNDP General Conditions of Individual Contract

Contacts:

Ms. A Moraru.

a.moraru@undp.org

Mr. Alexandru Oprunenco.

alexandru.oprunenco@undp.org

Background

The phenomenon of informal economy is wide-spread in many parts of the world. In Moldova it often takes form of hidden wages, when employees are paid only part of the wage formally and the rest “in envelope”, avoiding taxes. As a result, the public budget, as well as pensions and health insurance funds receive less funding while many employees are running huge health care and social insurance risks.

According to the Ministry of Labour, Social Protection and Family, 57% of employed population have not had their salaries reported in full, and the value of informal salaries has increased by 6% annually^[1]. One of the main determinants for undeclared wages among employees are: dissatisfaction with the low quality of public goods and services, such as quality of roads infrastructure, social protection system, public institutions, and health care system. One of the major factor affecting under-reported salaries is low transparency of public spending: only 11.4% of the population is highly informed about how the public money is spent, while 79.4% consider that they are poorly informed^[2].

To overcome this phenomenon, the National Tax Office has started to send out targeted letters to companies reminding them of their duty to pay taxes and wages in full. Our hypothesis is that these letters may achieve higher results if they use behavioral insights: “social recognition and reciprocity”, and “social norms”. In order to test this hypothesis, UNDP Moldova together with the National Tax Office intends to carry out a Randomized Control Trial (RCT) to assess the effectiveness of different types of letters on the formal salaries reported by businesses.

Thus, additionally to the standard letter, two more types of letters will be sent out by the National Tax Office to other two groups of businesses: one highlighting that most of the businesses in the sector pay much higher salaries, and consequently, higher taxes, and another one promising to award a recognition certificate in case reported salaries increase by certain percent. This experiment will help the UNDP team on the ground assess and measure the impact of this approach and will inform national tax policy at scale to formalize wages, protect workers’ rights and improve tax collection.

Therefore, UNDP Moldova is looking for an international consultant who would guide the MiLab team in the implementation of the RCT, ensuring a correct and valid trial.

[1] http://www.mmpsf.gov.md/ro/content/tranzitia-moldovei-la-economia-formala

[2] http://www.ilo.org/wcmsp5/groups/public/---europe/---ro-geneva/---sro-budapest/documents/publication/wcms_457542.pdf

Scope of work

This activity is part of an effort to apply rigorous methods, such as RCT, for policy evaluation in the Republic of Moldova. Besides, UNDP Moldova and its MiLab project are to looking to build its capacity for policy evaluations using RCTs and sees this project as contributing to that goal. 

In order to achieve these objectives, the Consultant will have the following responsibilities:

Guide and provide advice to the UNDP Moldova team on the overall design of the trial;

1. Advise on randomization, sample size, power calculation, and econometric model specification;
2. Review the intervention letters;
3. Provide ad-hoc guidance and support as needed;
4. Support and guide data analysis;
5. Validate the trial;

It is expected that the support will be offered remotely. Unforeseen travel will be discussed upon need.

Requirements for experience

Academic Qualifications:

• Master degree (PhD desirable) in economics, econometrics, social sciences, finance, or related discipline.

Years of experience:

• At least 5 years of relevant academic or professional experience in the field of economics / econometrics/ public policy / social sciences / or related;
• At least 3 research projects proving experience in conducting randomized control trials, as well as experience of working in the field. Links or copies of relevant published articles, reports, or other written proof of authoring or co-authoring such research must be provided;
• Research projects conducted in the field of tax policy will be an asset (copies or links to the articles or reports must be provided);
• Proven experience of econometric modelling and data analysis;

 Competencies:

• In-depth knowledge of advanced econometric methods for policy evaluation;
• Advanced experience in quantitative data analysis;
• Advanced user of Stata;
• Strong analytical skills;
• Proven commitment to the core values of the United Nations, in particular, respecting differences in culture, gender, religion, ethnicity, nationality, language, age, HIV status, disability, and sexual orientation, or other status.

Documents to be included

 

Interested individual consultants must submit the following documents/information to demonstrate their qualifications:

1. Proposal:

• Explaining why they are the most suitable for the work;
• Provide a brief methodology on how they will approach and conduct the work (if applicable);

2. Financial proposal;
3. Complete P11 form, Personal CV including past experience in similar projects, and at least 3 references.
4. Copies or links to relevant published articles and/or reports, if available.

Financial proposal

The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in installments or upon completion of the entire contract). Payments are based upon output, i.e. upon delivery of the services specified in the TOR.  In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount (including fees, taxes, travel costs, accommodation costs, communication, and number of anticipated working days).  

 

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