Who Owns What? The Gender Divide in Real Estate and Property Tax Compliance

The study reveals significant gender disparities in high-value property ownership in Tres de Febrero, Argentina, despite similar tax compliance rates between men and women. It highlights the need for policy reforms to promote wealth equality and fairer tax systems.

A study conducted by researchers from the World Bank, Nottingham University, PUC-Chile, and CEDLAS-UNLP, investigates gender disparities in property ownership and tax compliance in Tres de Febrero, Argentina. Using extensive tax administrative data, the research sheds light on how real estate ownership is distributed between men and women, the extent of tax evasion, and how each gender responds to tax enforcement measures. The findings reveal stark gender gaps in high-value property ownership, raising critical questions about wealth inequality and women's economic mobility. While ownership is evenly split among men, women, and co-owners up to the 40th percentile of property value, a clear divide emerges at the higher end of the spectrum. As property values increase, the share of properties owned solely by women declines sharply, dropping below 20% in the top 1% of property values. Men’s ownership, by contrast, remains relatively stable, with co-ownership becoming more prevalent at the top of the property value distribution. These trends suggest systemic barriers limiting women’s ability to accumulate high-value real estate, potentially tied to economic factors such as access to credit, financial literacy, and traditional gender roles in asset inheritance.

Tax Compliance and the Gender Paradox

Despite disparities in ownership, the study finds little difference between men and women when it comes to tax compliance. The overall property tax evasion rate stands at a significant 46%, representing about 8% of the municipal budget. Both men and women exhibit similar compliance rates across the property value distribution, contradicting previous studies that suggested women tend to be more tax-compliant due to higher risk aversion and stronger tax morale. However, women face slightly higher effective tax rates than men, largely because they own lower-value properties that are disproportionately affected by a mildly regressive tax structure. Fixed charges within the property tax system mean that smaller properties bear a heavier tax burden relative to their value. Additionally, the study finds that women are slightly less likely than men to use electronic payment methods for tax payments, even after controlling for age and income levels. This raises questions about financial inclusion and digital literacy among women taxpayers.

Tax Enforcement: Do Men and Women Respond Differently?

To assess whether men and women react differently to tax enforcement measures, a large-scale randomized communication campaign was conducted in October 2020. As part of this initiative, personalized tax reminder letters were sent to randomly selected property owners, informing them of their outstanding tax obligations, due dates, and payment options. The intervention aimed to understand whether subtle enforcement mechanisms, such as reminders, could improve compliance. The results showed a significant increase of about 4-5 percentage points in timely payments for both men and women, demonstrating the effectiveness of such low-cost interventions. However, there were notable differences in how quickly each gender responded. Men were more likely to pay their tax bills soon after receiving the reminder, whereas women took slightly longer to make payments but eventually caught up, eliminating any long-term compliance gap. This behavioral difference suggests that while men may react more immediately to tax enforcement measures, women are equally reliable taxpayers over time.

The Impact of Macroeconomic Shocks on Tax Behavior

One of the study’s most important findings relates to how men and women respond to macroeconomic shocks. During the COVID-19 pandemic, property tax compliance rates dropped dramatically, falling by approximately 25 percentage points. However, this decline was nearly identical across genders, indicating that economic crises do not disproportionately affect women’s tax compliance behavior. This challenges some traditional assumptions that women, who often face greater financial insecurity, might be more vulnerable to economic downturns in terms of meeting tax obligations. Instead, the findings suggest that external shocks, such as a pandemic or recession, impact taxpayers similarly, regardless of gender. This reinforces the idea that property taxation, unlike income tax or consumption tax, is largely a fixed obligation that does not immediately reflect temporary financial instability.

Policy Lessons: Making Property Tax Fairer for Women

The findings from this study have significant implications for tax policy. While gender-targeted tax enforcement strategies may not be necessary given the similarities in compliance behavior, the stark differences in property ownership call for broader policy interventions. Addressing these disparities requires measures beyond taxation, such as improving women’s access to credit, financial literacy programs, and policies that encourage equal property inheritance rights. Additionally, the mildly regressive nature of the current tax system, where lower-value properties bear a disproportionately high burden, could be restructured to ensure a more progressive tax model. A system where higher-value properties contribute a greater share could help bridge the wealth divide while improving revenue mobilization. Governments should also consider expanding the use of tax nudges, such as digital reminders and automated payment systems, to encourage timely compliance without resorting to punitive measures. The study’s success in using soft enforcement methods highlights the potential of such strategies in improving tax collection rates without additional enforcement costs.

The research contributes to the growing discourse on gender and taxation, offering empirical evidence that challenges conventional wisdom while reaffirming the need for gender-sensitive policy design. While men and women display similar tax compliance patterns, the stark disparities in high-value property ownership reveal deeper economic inequalities that taxation alone cannot solve. Policymakers should integrate gender-disaggregated data into tax systems to better understand and address these issues. Future research should explore the root causes of gender disparities in real estate ownership, such as legal barriers, social norms, and differences in investment behavior. By addressing these underlying factors, tax policies can become a more effective tool in promoting economic equity and financial inclusion. Ultimately, while property tax compliance does not appear to be gendered, property ownership certainly is, and this imbalance warrants serious attention from both researchers and policymakers.